No Golden Goose:

The materials sector is looking to put up its third consecutive 20% plus annual return as the XLB is higher by 21% with a few weeks left in 2021 (in 2019 and 2020 it scored advances of 20.7 and 24.6% respectively). On a WEEKLY CLOSING basis for the last 7 months, it has been trading between the round 80-90 numbers. The 4 weeks ending between 7/23, and 9/24-10/8 were all below 80 intraweek but all CLOSED above the figure, and it did manage a finish of 90.10 the week ending 11/12. Aluminum and steel really put a bid under the space as AA is higher by more than a double YTD so far, even though it’s 21% off 52-week highs, and best in breed NUE has also put up a triple-digit return this year. Acting as an anchor on the group are the gold miners. Names such as NEM and RGLD are lower by 7% in 2021 so far and others more like laggards GOLD and AEM off 19 and 30%. Paper, chemicals, and packaging plays round out the diverse space. Stocks in the arena to watch going into year-end are ALB which today recorded a bullish hammer and CLOSED above the 244.46 cup with handle pivot it took out on 10/26 jumping 6.2%, then rose 5 straight sessions thereafter displaying good follow-through.

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