Material Witness:
The materials group is just the ninth best major S&P sector out of 11 on a YTD basis, a bit misleading as the XLB has still advanced almost 15% thus far. It is outperforming just the staples and utilities. The ratio chart below shows the glaring weakness against the S&P 500, and gold has been a big drag, along with containers and packaging. Interesting enough in the latter space a new IPO, which trades very lightly could be emerging as a leader in KRT. After spending much of June and July seeing the very round 2o number being supportive, last week screamed higher by 15%, and Monday witnessed some nice follow through (compare the action against peers CCK BLL and PKG all off between 13-21% from most recent 52 week highs. Steel on the other hand has been a boost to the group. TX, a Luxembourg play, is on a very impressive 5 week winning streak and has acted well POST breakout above a 39.70 double bottom pivot. Aluminum has helped the materials as well with AA up nearly 70%.