Materials have been very strong over the past year and more recently broke out higher versus the S&P 500 (relative strength).
Today’s chart highlights this price action. In one pane we see the steep up-trend of the Equal-weighted Materials Index and in the other pane we show its performance on a relative basis versus the S&P 500 (SPY). In the latter, you can see that it recently exceeded a 10 year downtrend line from 2011.
So at a time when Technology stocks are faltering there remains viable options in other sectors, like materials, energy, REITS, and financials.
Within the materials sector, there are plenty of good steel, paper, and chemical stocks with only the precious metals stocks lagging understandably. Other sectors like REITS and Financials are still strengthening near-term, as mentioned previously.
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Author has 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.
