The American consumer is spending money, and investors are cashing in.
The consumer discretionary ETF, the XLY, is up more than 4 percent this year, making it the second-best performing sector in 2015. And one trader who relies heavily on the options market is betting on a massive breakout over the next two months.
"I think the XLY is heading to $80," said Andrew Keene, founder of Keene on the Market. And his reasoning is based on a combination of strong technical patterns and large institutional call buying in the options market.
"The XLY has been in a very clear bullish uptrend channel since consolidating in 2012," Keene said Thursday on CNBC.com's "Trading Nation." "But recently we've seen a little bit of a pullback." The XLY is down 2 percent from its recent high. "But the ETF has found support at its 50-day moving average," Keene said, adding that the next level of downside risk could be at the 100-day moving average at around $72. "I like to buy strong [trends] on a pullback."