Industrial Allure:
The industrial space has been on a roll in 2025 as it is the best performing of the major 11 S&P sectors YTD with a gain of more than 9%. It has been buoyed by defense, waste management, heavy construction, and of course defense. Let us dive into some influential players within. Top ten XLI holding ETN displayed some brute strength Monday getting the week off to a good start breaking above a bull flag. The WEEKLY chart is taking out a cup with handle and notice volume tailed off within the handle suggesting sellers were reluctant to part with their positions. Other top ten component GEV is consolidating a very powerful move here as it sets up its own bull flag and a move above the very round 500 number could see a break toward 700, and a breakout would negate a couple of doji candles from 6/3 and 6/13. DE which has been steadily outperforming peer CAT is eyeing a bull flag trigger of 526 which could see a measured move to 616. If the overall bull flag mention sounds redundant it is a good sign that stocks are digesting big moves and looking for another continuation move higher. For those looking for international exposure, remember that from the start of 2025, ERJ may be starting to get the upper hand on rival BA as it breaks above a ratio chart downtrend. This could see a possible move to 61 from Monday’s bull flag breakout above the very round 50 number.