After a –5% decline in March for the SPDR Industrials ETF (XLI) and –4% for the Global Industrials ETF (EXI), both ETFs have started to turn up witin the context of a 3 month uptrend.
This can be seen in the daily charts shown below (top) and weekly (below).
Here we compare both the XLI and EXI ETFs with our near-term targets, followed by the stock ideas with their targets based on our Money Flow Unt (MFU) analysis or Make or Break (MOB) bands.
Further below, we share 4 industrial stocks we like.
Industrials ETFs – $XLI vs $EXI (daily and weekly)
Our model score for the XLI went positive on February 4, and the EXI went positive last week with the recent turn up in absolute and relative momentum. Note that our model score for the XLI is stronger than that of the EXI due to the stronger relative performance vs. the ACWI.
When measuring both ETFs for absolute and relative trend and momentum of trend, as well as money flow, the U.S. only XLI has a much stronger model score, and we see this to continue in the near future.
Below are 4 industrial stocks we like as bullish long ideas. These are derived from a recent report we generated for clients (amongst several others). They include: Illinois Tool Works (ITW), Cummins (CMI), Paccar (PCAR), and Caterpillar (CAT).
Author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.