Materials hanging out at new highs. $XLB pic.twitter.com/lldPIacmhn
— Shane C. Murphy (@murphycharts) November 9, 2021
Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). It’s a chart of the Materials sector ETF, $XLB, over the past year, along with its relative strength line below. The largest stocks in this ETF include $LIN, $SHW, $APD, $FCX, and $ECL. Shane points out that the Materials sector is breaking out to all-time highs for the first time since May. Materials have historically done well in November with a ~90% win rate over the past 19 years. To be fair, this is the second smallest sector as it represents just 2.6% of the S&P 500. To give you an idea of how small that is, single stocks like Amazon have a larger weighting in the S&P 500 than this entire sector. Nonetheless, the Materials sector is breaking out of a six-month base and looks poised for its next leg higher.