Seasonality Slowdown?
With markets gyrating as they have been investors will dig deep to try and find something to give them more conviction for a potential idea. If you were peeking into the industrial space it would be surprising to see that between December and July the sector seems to literally just languish. Of course, that does not mean you will not find opportunities within but it suggests you can probably get more clarity playing another group. If one were to play the arena one would want to see what has already displayed some momentum. Looking at one and three-month time frames the aerospace group seems to be the creme that rises to the top. For certain BA is nudging the overall group higher, but other names in the diverse space demonstrating strength include CNHI in commercial vehicles and the diversified GE from 62-88 during the October-November period. Look for hidden gems that are not bending in the softness.