Rotation Over the Years

Given the explosive rally consumer staples, the prototypical "defensive" stocks, have seen since the 2009 bear market lows, it is understandable that the inevitable unwinding of that seemingly crowded trade would take some time. 

Indeed, the XLP, staples' ETF, has enjoyed such a one-way, explosive monthly chart uptrend since 2009 that one could easily mistake the XLP for a technology stock. 

Still, in recent months a name like KO became more viable as a short idea than anything else. And that continues to be the case today, with XLP weak again and KO sporting a daily chart, below, looking ripe to breakdown further below all moving averages. 

CPB and K also fit the bill as short idea. PG has been a holdout but is beginning to look a bit wobbly, too. 

Of course, we can see the correlations somewhat align, with TLT weak today, meaning rates are inching up, banks rallying, and yield-chasing investors in the staples backing off. I suspect we will not see these correlations trade more clearly until after the Fed's acts or omissions in the next FOMC Announcement. 

But on their own technical merits, money is certainly flowing out of staples come off the Labor Day holiday.