$XLP-Consumer staples inversely linked to rates
$Consumer Staples Select Sector SPDR Fund(XLP)$ - Consumer staples have shown a strong inverse relationship with interest rates, approximately 90%, since June 2024.
The consumer staples indices have been closely correlated with the 10-year Treasury yield, and this trend includes notable segments like HPC, Food, and Beverages.
This indicates a significant strengthening in the bond-consumer staples dynamic compared to the past 20 years, where the correlation was primarily with 30-year Treasuries at around 60%.
The educational content yesterday approached fundamental and technical analysis with a stock from this sector, and will continue next Wednesday with more.
$E-mini S&P 500 - main 2412(ESmain)$ $E-mini Nasdaq 100 - main 2412(NQmain)$ $iShares Russell 2000 ETF(IWM)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$
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$Pepsi(PEP)$ - Pepsi appreciated +9% on average, 90 days after the first rate cut.
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$Procter & Gamble(PG)$ - Procter and Gamble appreciated 6% on average after first rate cut.
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https://x.com/SmartReversals/status/1836924205608087890
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