Materials Gains:
The materials are not thought of as a growth category, as it has not been the best major S&P sector performer on a YTD basis in over a decade. The space is diverse with steel, paper, aluminum, gold and packaging names, and are coveted for dividends. Stocks like AA have been very soft, as it sports a bear flag pattern at the round 20 number and trades 39% off most recent 52 week highs. The paper plays stood out on a tough day Monday and the charts of CLW SWM and IP looks encouraging. The illiquid WOOD ETF sports a bull flag, and is a sign of a thriving housing market. Below is the seasonality chart for the overall group, via the XLB, and if one can look past a somewhat weak December, the last 4 years, the picture brightens up for the first 7 months of the year. The fund is having some issues at the round 60 number at the moment, and did record a bearish counterattack candle on 11/15, but remains just 2% off most recent 52 week highs. Look for some pullback next couple weeks for an ideal entry, speaking on recent historical terms.