The Consumer Discretionary sector of the market is absolutely on fire lately. With the US consumer out spending in force, and completely confident in the US economy, the discretionary stocks are reaping the benefits. The M&A crowd has taken notice too. Just Friday we heard of a an activist position being built in Lowe's (LOW  ) which sent the stock higher by over 5%.

The most common ETF to use to take a look at this space is the (XLY  ). One quick look at this chart and you will see a green rocket ship headed almost straight vertical lately. Since the beginning of the year the XLY has returned over 6% already and seems to be just getting started. Since breaking out in October the XLY has added over 13%.

Taking a look under the hood of the XLY we quickly can see that Amazon (AMZN  ) is the leading holding for the ETF. Amazon is over 17% of the weight of the XLY and just at this point we can see why the sector is so hot... Amazon. With a 12% gain already this year, Amazon is surely one of the beasts of the XLY performance group.

The big holdings in the group are all performing the way an investor would hope. Home Depot (HD  ), which is the second largest holding is already up 5% on the year. Netflix (NFLX  ) is another great example of the Consumer Discretionary trade. But at what point have we moved too far too fast?

Many analysts are starting to suggest that the second half of the year will be when a lot of this starts to calm down or pullback, but we can look even closer. In the short term there is a run toward the consumer discretionary space and for now it is best to wait for a break in the bull rush.Remember, over extension leads to over paying, and no one likes to over pay.