Ordinary Industrials:

Looking at the industrials as a whole, the XLI since 2007 has never been on a YTD basis better than the third-best of the major 11 S&P sectors. It has been a status quo actor, and that is being nice as 10 of last 14 years it did not outperform the S&P 500. In 2021, nearly three quarters in, the XLI is higher by almost 14%, as the S&P 500 has advanced almost 19%. That does not mean there are opportunities to be had, but maybe one needs to temper their aspirations to a degree. Weighing down the overall space this year have been the railroads and delivery services. Showing firmness has been heavy construction, which has been consistent throughout as the best sub-sector on  YTD and one-month look-back time frame. PWR is a best of breed name and is still above the WEEKLY CLOSE the week ending 9/3 which rose 12.2% (best WEEKLY gain in 14 months) in double average WEEKLY volume. Airlines may be ready for take-off, pun intended, although some international players are already at a higher altitude than domestic peers. Think RYAAY or VLRS. The JETS ETF is still 16% off most recent 52 week highs, but it rose 7% the last 3 days of the week forming a bullish three white soldiers pattern in robust volume. 

This article requires a Chartsmarter membership. Please click here to join.