Material World:

Taking a longer-term peak at overall markets on a one-year look-back period, only 3 of the 11 major S&P sectors are positive. Energy is there of course, although that space is dealing with a long overdue hangover now, and industrials and materials round out the trifecta. There are some standouts within such as VVV OI and SCCO to name a few. For sure gold and silver have been weighing down the group, but they look like they could be forming some bottoming patterns. Interesting ratio charts include SCCO:FCX, with SCCO up almost triple what Freeport YTD so far and pays a much bigger dividend above 5%. Some “blasts from the past” include former powerhouse CF. CF is now 28% off most recent 52-week highs, while peer MOS is 33% off its annual peak but Mosaic over the last one month period is up double that of CF, and it is approaching a double bottom pivot of 55.90. ATR is a nice mid-cap play (not average true range) and if it can decisively break free from its WEEKLY 200 SMA here can start to build the right side of a potential cup base. Below is the overall picture of the XLB against the S&P 500 and green shoots abound.

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