The materials sector has been going off the hook and I believe we are just seeing the beginning. I trade by sector, not by what the overall market is doing. I can be long stocks in one sector and short stocks in another sector at the same time. Where the overall market is going to be in 12 mths time is of no interest to me whatsoever. I am going to be looking at some of the main sectors that I trade.
I have been building my sector watch list for many years. All of my trades come from my watch lists. I never trade a stock unless it spends time on my watch list first.
Materials kicked off in early 2016. The sector never even blinked in 2017. I search for stocks that produce these materials and I add them to my watch. This is what I spend 95% of my time doing research for my sector watch lists.
Gold and silver futures loves rising inflation. I hold physical metal as well as trade in gold and silver producer stocks.
Copper futures love inflation.
Aluminium a couple of good up-legs in 2017.
Uranium looking for a breakout.
See all charts below
Zinc been very good.
Palladium has been great. Interesting one to research.
Platinum has had a couple of false starts.
Coal big start to 2018.
Iron broke out on second up-leg.
Light crude very strong.