Larry Berman CFA, CMT, CTA SPDR Materials ETF XLB-N TOP PICK Feb 21, 2007

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

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.

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

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.

(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.

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. 

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