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!
JC