All-time For Highs Basic Materials

March 20, 2024

Since the beginning of February, the two best performing sectors are Energy and Materials.

These stocks have been dominating the back half of Q1.

You're seeing new all-time highs today across the board in Materials.

Here are two of my favorite ones we've been in.

The S&P500 Materials Index closed at a new all-time high today.

And one thing we know for sure from studying history is that new all-time highs are not something you see very often during downtrends.

The trend is up for this group.

And it's not just in Large-caps.

Go down the cap scale, including Mid-cap Materials and even Small-cap Materials.

New highs across the board:

This is a very under owned group of stocks.

Materials represent 2% of the S&P500, less than 1% of the Dow Jones Industrial Avg and 0% of the Nasdaq.

You can still get call options cheap going out to early next year. Implied volatility is super low in a lot of these stocks.

I like the defined risk / high upside setups. The market doesn't always give us those.

But it is today.

All the trade ideas are listed here.

Let me know what you think!

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