Material Difference:
Investors must respect the action within the materials sector. On a 6 month timeframe, as seen below, it is the best performing of the major 11 S&P groups (edging out the industrials), and this is with the gold miners weighing on them. The space has benefitted from some firmness in the hard commodity plays like copper, steel and aluminum, although it does bother me somewhat to see leaders now, that in previous years registered reverse stock splits, like AA or MT. But PRICE action supersedes all else, and that force is speaking loudly. Other areas within that have helped push the materials upward are the chemicals, paper and containers and packaging. IP and PKG produced powerful recent runs, both highlighted in our Materials note from late September. The sector may need to cool off as both the JJC and SLX are on 6 week winning streaks, but any pullback should be welcomed with open arms.