Early Cyclicals Starting to Show Some Cracks In The Facade

Early cyclicals--ie, the MSCI Consumer Discretionary sector--have been standout performers for the last five years, having outperformed the MSCI World index by over 50%.



But, we are starting to sense come cracks in the facade of early cyclical leadership.  To illustrate the trend, below--using our relative strength based point and figure technique--we select some well known consumer discretionary names that appear to be breaking down. This list constitutes a group of stocks we would avoid.