This update, which started as an NFTRH+ update is being sent to the entire list because it works as a macro update as well. A reminder that the option to opt in to NFTRH+ emails is included in the regular NFTRH service (i.e. it’s free). It’s just that I ask interested subscribers to opt in (by sending a request through the contact link above) so as not to disturb those who do not want trading updates by email. The updates are, after all, always available here at the site.
The Materials sector got a massive hype infusion with the election of Donald Trump and his wall and infrastructure building inclination. For those interested in the sector for fundamental reasons, here is the setup in XLB, which has been consolidating toward support in what looks like a bull flag. This view is of the entire post-election environment.
Here is a weekly view of XLB with a measured target that is +22% from current levels.
Here is a daily of XLB’s leadership, post-election, having disappeared. In other words, its hype premium is gone and I don’t see that as a bad thing at all.
Finally, here is the fact sheet for XLB (including holdings) from SPDRs, where you can also study dividend history and all other aspects of the ETF. Again, this update is for anyone interested in the U.S. Materials sector, not a recommendation about the Materials sector (although I am interested in it).
