The Industrials sector had a huge breakout in October and, excluding Energy, was the best place to be in the month. We shouldn’t expect every month to be like the last, but the trend is higher over the intermediate term. The mid-2021 relative highs is the target.
Machinery stocks are leading the way. Check out this rounded bottom for Cummins.
Deere is battling overhead resistance as it tries to break out of this 2-year consolidation.
But it’s already setting new highs on a relative basis. Expect the absolute chart to follow suit.
Defense names have also done well. Northrop Grumman continues to stairstep higher, and Lockheed Martin just ripped to new all-time highs.