Industrials Are Breaking Out to The Upside
- Posted by Greg Harmon
- on December 18th, 2012
I hear you all chuckling. The Industrial Select Sector SPDR, $XLI, broke out over a week ago. Yes I know that. The daily chart below shows the breakout, back test and move higher. Old news. But
have you looked at the longer time frames? That is where the news, and real money, is to be made. The weekly chart below shows a break of a 18 month long symmetrical triangle this week. The target for the pattern break is a move to 46 nearly 20% higher. And it has support from a rising
and bullish Relative Strength Index (RSI) testing 18 month highs itself. And the monthly view (bottom) is looking very strong as well, less than 2% from breaking above 5 year resistance. The monthly view also has support from a rising RSI making new higher highs. You can play the ETF itself or the Top 10 Holdings all look good as well with several, Honeywell, $HON, Caterpillar, $CAT,
Emerson Electric, $EMR, General Electric, $GE and UPS, $UPS already breaking higher. But 5 of those top 10 are just at the breakout levels: Boeing, $BA, Deere, $DE, $Union Pacific, $UNP, United Technologies, $UTX and 3M, $MMM, and ready to go. Focus on the second list if you are not playing the ETF.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Top Trade Ideas for the Week of November 24, 2014: The Rest Premium
- Top Trade Ideas for the Week of November 24, 2014: The Best
- SPY Trends and Influencers November 22, 2014
- Macro Week in Review/Preview November 21, 2014
- Wheat for Breakfast
- Watching the Cup and Handle in Hewlett-Packard
- Premium Earnings 11-20-14
- Spotting Sharks in Corn & Oil
- Positioning to Buy Disney on a Dip
- Premium Earnings 11-19-14