High-End Is About to Go Higher

It's time to buy the things we want and discard the things we need. That may seem counterintuitive, but we're going to stick with that theme because it's working. A case in point would be a trade idea from May 30 to buy consumer discretionary stocks and sell companies that focus on consumer basics. Since then, our long position in the Consumer Discretionary Select Sector SPDR (XLY) has outperformed our short position in the Consumer Staples Select Sector SPDR (XLP) by a modest margin.

In the May 30 column, I mentioned an idea to buy and sell individual components of those sectors, specifically to buy Starbucks (SBUX) and sell Colgate-Palmolive (CL). Since that day, SBUX (green) has managed to reach a new all-time high, while CL (red) has lost ground....314 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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