Material Slackers:

In the materials sector which is higher by more than 17% YTD via the XLB, there are some stocks that have not participated, and that in itself is a red flag. Names that come to mind in a strong overall steel space are ATI and TS, the latter now 29% off highs made in early June (TS is having issues currently with the very round 20 number). Of course, gold miners have been miserable performers with AEM now almost 40% from most recent 52 weeks highs. GOLD a former best of breed name is now attempting to cling to the 20 figure after fading from 30 back from July-August 2020. Below is the chart of DD which is struggling and is following through lower by more than 2% this week after the prior week slipped 4.1%. It is now 7% below its 200 day SMA, a line that acted as resistance last week after testing it following the break below on 8/18. Laggards lag for a reason. Do not get pulled into value traps. Wait for them to prove themselves, in DD’s case a few consecutive CLOSES above the 200 day SMA.

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