Your Cabin in the Woods is Not as Safe as You Think

With the broad market correction continuing to be the controlling factor regarding most equities at the moment, it is worth looking into the idea that many of the "safe" stocks housed in the XLP ETF for consumer staples may be ripe to participate in the correction themselves.

As a market correction deepens, bears are notorious for showing those claws to all sorts of stocks which we typically think are immune to the correction. And what better group of stocks for this scenario than the XLP names? We know Wal-Mart has earnings later this week, but the likes of CLX KO JNJ MCD PEP have all had steep rallies since October leading to the steep XLP angle of ascent higher seen on the daily chart, below. 

Indeed, while the Nasdaq cabin, oil cabin, and many other high beta/growth cabins under attack in the woods, the XLP cabin may no longer be as safe as longs things, at least in the coming sessions if the correction continues to play out. 

I am probing this working bearish thesis with a trade or two on the short side and am considering more in the XLP.