AI XLP Forecast


Bullish Case: XLP presents a stable investment option as implied volatility is trending downwards, indicating a lack of drastic market movement. With a historical return ranging positively over holding periods, confidence in consumer staples could lead to price strength.




Bearish Case: Despite stability, the high put volume and recent flat trading suggest market caution, potentially yielding downward pressure on XLP prices. Implied volatility at historic lows might mask underlying concerns.




Potential Outcomes:

1) Sideways movement continues, 65% probability;

2) Mild increase driven by market recovery, 25% chance;

3) Market correction leading to a 10% pullback, 10% chance.




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October 20, 2024


Consumer Staples Select Sector SPDR Forecast

XLP        Consumer Staples Select Sector SPDR











Correlated Assets

Assets that tend to move strongly with XLP



CL Forecast + Options Trading Strategies   CL  Colgate-Palmolive (0.99)


ADMA Forecast + Options Trading Strategies   ADMA  Adma Biologics (0.98)


VIG Forecast + Options Trading Strategies   VIG  Vanguard Group, Inc. - Vanguard Dividend Appreciation FTF (0.98)


BK Forecast + Options Trading Strategies   BK  Bank Of New York Mellon (0.98)


UHS Forecast + Options Trading Strategies   UHS  Universal Health Services (0.98)



Uncorrelated Assets

Assets with little price relationship to XLP



CTLP Forecast + Options Trading Strategies   CTLP  Cantaloupe (0.0)


WSM Forecast + Options Trading Strategies   WSM  Williams-Sonoma (-0.0)


MCD Forecast + Options Trading Strategies   MCD  McDonald's (0.01)


BE Forecast + Options Trading Strategies   BE  Bloom Energy (-0.01)


SNAP Forecast + Options Trading Strategies   SNAP  Snapchat (-0.01)



Anticorrelated Assets

Assets that tend to move strongly against XLP



SAVE Forecast + Options Trading Strategies   SAVE  Spirit Airlines (-0.94)


MED Forecast + Options Trading Strategies   MED  Medifast (-0.95)


SH Forecast + Options Trading Strategies   SH  ProShares Short S&P500 (-0.95)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.96)


SDS Forecast + Options Trading Strategies   SDS  ProShares UltraShort S&P500 (-0.96)









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