More new highs today, but the Russell 2000 finally joined the party and blasted off through resistance to close up 1.7%. The animal spirits are alive and well when you see the Russell getting bought that like that because it tells you they are buying small-cap growth names.
Biotech was better and is still toying with us. XBI made an all-time high today but just barely and the volume wasn’t impressive. I’m looking for the big breakout that is accompanied by big boy volume, not what I saw today. Maybe tomorrow, maybe next week.
IBB still needs a few points to tag all-time highs but does appear to be breaking out of that really bullish and fairly massive cup and handle that I showed you the other night.
What was most impressive today though was the breakouts in steel (SLX) and metals & mining (XME).
SLX
XME
I have highlighted these two sectors for the last two weeks in the Sunday videos. I think this will be the big theme in 2018 and although we don’t have exposure yet, we will. Now that they have broken out and validated, I will wait to get involved on a pullback.
The names I have talked about the last couple of weeks within these sectors have been acting well, many of took them without me so good for you.
I still see 40-50% in these names this year, I’m just trying to buy them right. Truth be told, I just should have closed my eyes and bought them all last week, but you always get another shot.
A few examples of the names I mentioned were CLF, ATI, and RYI
Take a look at what they did today.
RYI-
CLF
ATI
I had some FOMO today, (fear of missing out), but they will give us another shot. Actually, based on the charts that I have probably been spending too much time staring at in these two sectors, the move is only “just beginning”.
Look at the weekly and monthly charts and you will see what I mean. These two sectors (SLX/XME), and the stocks within them, have huge upside over the next year. So be patient and we’ll wait for the setups and try and buy them right.
There are many others, but those are three I have been highlighting. Steel is ramping as Donnie and McConnell talk infrastructure.
Here are some names I’m watching that have really set up well this week.
This one could be ready now and I may add soon.
CENX
Here are some in different sectors. I may throw one or two of these on the barby tomorrow, we’ll see how it goes.
IGT
ADMS
CTMX
CRR
QNST
See you in the morning.