“Juicing” Up the Fund:
Looking at the top holdings in the XLI the selection committee certainly became very creative adding UBER to the fund back in 2019. It is the second-largest holding in the ETF at more than 4% and its recent run has helped the benchmark handsomely. The stock is up 48% YTD and the MONTHLY chart below shows it looking for a cup base breakout in May if it can finish above 82.24 this Friday. The potential breakout to 110 which quite frankly the way it is going could happen in late 2025. Its daily chart is well extended above the double bottom trigger of 77.68 and Monday ended a 4-session losing streak, its first since the last 4 days of 2024. The streak began with a bearish counterattack candle on 5/20 just above the very round 90 number, but remember the vast majority of stocks that trade through the very round 90 number often go on to trade to par and beyond. The XLI has a solid 1-2 punch with top component GE at 5% and I am still in awe of its MONTHLY chart which has nearly met its measured move to 257 from its cup base breakout above a 142.11 pivot in a pattern 8 years in duration. Since October 2022 it has declined just 7 months and back-to-back times just once.