Here is a brief review of period-over-period change in short interest in the June 1-15 period in nine S&P 500 sectors.

Stocks we believe will outperform in an up trend and 40% short the S&P 500 Index. The volatility hedge will remain 100% long.

Looking for the bellwether of the U.S. economy? Think consumer goods stocks.

For most of 2013, discretionary sectors were leading defensive sectors (ratio was rising in 2013).

The Consumer Staples sector ranks first out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Very Attractive rating, which is based on aggregation of ratings of 10 ETFs and 15 mutual funds in the Consumer Staples sector as of July 17, 2014.

The previously downtrodden U.S. consumer discretionary equity sector is not only showing some signs of life, but also the power to sustain it.