In a world that’s been dominated by large cap growth as of late, the Industrials are struggling to keep up.
(Premium) Aerospace and Defense Driving Industrials
The relative pullback in Industrials has continued in April.
(Premium) April Industrials Outlook
The Industrials have lagged this year along with everything else that isn’t tech-related. On a relative basis, the sector is still in an uptrend, but it’s fallen below support from the 2021 highs. That puts the outlook in question.
(Premium) March Industrials Outlook
The Industrials sector continues to show relative strength.
(Premium) February Industrials Outlook
The Industrials sector weakened on a relative basis since our last update, but unlike the weakness we’ve described in Consumer Staples and Health Care, Industrials have NOT fallen below support.
(Premium) January Industrials Outlook
We lowered our overweight rating on Industrials after they reached our relative target in November. They’ve since absorbed that level of resistance and resumed their march higher. We’re wary given the lack of momentum confirmation we’ve seen so far but, this is not a group we want to be approaching from the short side.
(Premium) December Industrials Outlook
The Industrials were a force to be reckoned with in October and November, but now they’ve reached the 2021 highs – the target we set last month.
November Industrials Outlook – Unlocked
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.