SPDR Materials ETF (XLB)

An inflationary economy like this is goo for materials. Ongoing onshoring and builds will be tailwinds.

When the year started, she made a bullish call on materials, which the market expected to be among the top three sectors, above 30% earnings growth projected this year. Keep buying this.

Has recently sold position. Not as bullish on materials. Expecting rotation out of this sector. Material sector usually peaks in May. 

Good exposure to chemical stocks (70%) of portfolio. Metals and mining also a component. Expecting strength in commodities with strong economy. Material stocks tend to perform well in January-May as well. 

(Past Top Pick, Oct. 30, 2017, Up 2%) Has held up compared to other commodities. Has had an uptrend since early 2016, but the USD remains a major influence. He still likes it. Positive China news will push this up.

An ETF where you could look at any individual component, because they are big enough in the US that you are not walking into a landmine. Chart shows a nice break out earlier in the year, which was pretty positive. If you don't own individual names, then this is a good place to be. One of the strongest sectors in both Canada and the US for the next 6 months.

This is made up of the biggest names in the materials sector. The sector is showing really good relative strength. Really good support at around $51.

(A Top Pick Feb 23/16. Up 2.86%.) One of the sectors that actually didn’t benefit from the Trump rally in November and December. This has really been performing at market, and hasn’t had a strong run at all. We are now entering into its non-favourable period.

This is chemicals in the US. We are seeing slow growth with a bump up from Trump. It is positive on a fundamental basis, technically it looks good and it is strong from a seasonal point of view.

Seasonality is August to early October. It is a defensive sector. You are better off to hold off on this, this year.

(A Top Pick Nov 18/13. Up 3.08%.) Materials tend to do well from October to about this time of year. Actually, they tend to do well through to about the end of May. Sold his holdings today and is hoping to get back in at a lower level.

His Top Picks are not “Buy & Holds”. They are Seasonal Picks so there is an exit strategy. This is one where you get in now but get out at the beginning of January. Peak period of seasonal strength runs from Nov 19 on average, all the way through to the start of January. Average gain over the short period is about 6.3%. Technical charts show this having higher highs and higher lows and trading above significant moving averages, showing positive relative performance. Has persistently bounced off the 20 day level, which would be a great level to get in assuming there is weakness.