Industrial Revolution:
The group via the XLI has been on a run, higher 5 of the last 6 weeks and this week added 1.1%. It was by far the best performer of the major 11 S&P sectors Friday rising 1.7%. Perhaps in some minds the run seems somewhat artificial as both UPS and FDX, big laggards, were upgraded this week by GS. Both names rallied more than 3% this week, but are well off their most recent 52 week highs. However if you look within the industrial group as a whole, there are patches of strength one can profit upon. The airlines, railroads and defense stocks have been holding up more of their fair share. Below is a chart of the XLI, and it is nearing a break above a cup with handle pivot. The ETF is looking at a potential FOURTH challenge of the round 80 number since January ’18.
Foreign Carriers:
Yesterday in our energy note we discussed the strength in some of the international names. Investors would be wise to not eliminate these names in any group, of course if the chart is worthy. CPA looks good here as it cradles the very round par number, although it does not trade a huge amount of shares on a daily basis. But it has since some excellent accumulation recently with huge volume on 5/9 and 7/5, which both gained 19.6 and 7.5% respectively. A name that is a bit more liquid and also deserving of your attention is GOL. The Brazilian name is higher by nearly 300% over the last one year period and below we take a look at the technicals.
Examples:
The market has made a very comfortable rebound from last winters drama. Some name have acted better than others of course. Below could be a good example, with the chart of WM and how it was profiled in our 6/27 Industrial Report. It has been above its rising 50 day SMA all year with the exception of the first two sessions, and its uptrend is beautiful, slow and steady. The stock has lost ground on a WEEKLY basis just 4 times in 2019, and peers RSG and WCN are acting well too. Important as you do not want to be the only name carrying your specific group higher.