Gaining “Steam”:
Steamboats were a significant invention during the “industrial revolution”, and the sector as of late has been on the ascent. The group since mid-November has been a stellar performer and if one squints here they can see they are the second-best actor of the major 11 S&P sectors trailing only the financials. It is the black line on the chart and last week overtook both communication services and utilities. Within the space, railroads are continuing to move higher, a good sign of economic activity, with leaders UNP and NSC adding 4 and 6% last week. The former recorded a breakout above a WEEKLY double-bottom pivot of 246.27 last week and the MONTHLY chart took out a cup with handle trigger of 254.62. I am not endorsing them but the airlines could be making a move with an unsure crude direction as the JETS are on a 4-week win streak following a bullish counterattack candle the week ending 8/9. Defense stocks have been putting on a show and the ITA MONTHLY chart registered a bullish hammer candle in August. The group is firing on all cylinders and look for it to continue to do so if this “value versus growth” story keeps playing out.