Chemical stocks are breaking out to all-time highs. It’s not just one or two of them either, they are doing this collectively as a unit. When we see broad-based participation out of a group, it’s not something we want to ignore. Today I want to smooth things out and look at this group from an Equally-weighted basis. While monster stocks like Dow Chemical and Du Pont break out to new all-time highs, the question we want to ask is whether or not it’s just them or are the rest of them joining along?
This is the All Star Charts Equally-Weighted U.S. Chemicals Index. They peaked in the Spring of 2015 along with many other stocks, sectors and indexes. After bottoming in early 2016, again with many other stocks, Chemicals have absolutely ripped without looking back. Remember this Equally-weighted index includes all of the stocks in the S&P500 Chemicals Index, but gives each stock the same weighting:
All Star Charts Equally-Weighted U.S. Chemicals Index
There are a lot of ways to take advantage of this from the individual stock level. I suggest taking the time and going through all of the stocks in this group
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