Industrial Sector Review: 11/22/19

Give the industrial arena credit as it is still on pace to finish second best among the major S&P sectors on a YTD basis, higher by more than 28% thus far. It is on a current 6 week winning streak, higher by a gradual 9%, but the move is in jeopardy as the ETF is lower by 1.4% heading into Friday this week. The airlines have been a drag on the overall, diverse group with names like AAL off by more than 30%. Other transportation modes have been weak with trucking names like CHRW in bear market mode down 21% from most recent 52 week highs. Of course theses names are outliers as they are offset by leaders in the space, but we did mention a few weeks back how the round 200 number on the IYT was most likely to be problematic. Below we take a look at the total sum of the industrial arena, via the WEEKLY chart of the XLI. Give the group credit for maintaining a solid altitude, pun intended, on the backs of a solid building materials, defense and heavy construction groups.