The following (green highlights) is an excerpt from our February 7th Asbury Alert entitled, Initial Upside Target Met In Materials Sector (XLB). Asbury Research subscribers can view the entire report by logging into our Research Center by clicking the big gold button at the upper right corner of this page.
excerpt from Asbury Research’s Asbury Alert
February 7th, 2012
US Stock Market Sectors: The Materials Sector
In our January 9th 2012 Keys To This Week report, we said:
“Chart 6 plots a daily bar chart of the Materials Sector SPDR ETF (XLB) since June 2011 along with its 200-day moving average and highlights a chart pattern indicating temporary investor indecision — which the ETF broke out from to the upside on January 3rd. The pattern targets an initial +9% rise to 38.00.“
The chart below, which is an updated version of the one that appeared in our January 9th report, shows that our 38.00 upside target for XLB was essentially met on Monday as the Materials Sector ETF traded as high as 37.97 intraday.
This equates to a +9.2% rise in XLB since we first identified this opportunity on January 9th.
Also noteworthy is that the S&P 500 (SPX) coincidentally rose by 5.2%, which means that XLB outperformed its benchmark by +4.0% during that same one-month period, fulfilling our January expectations for upcoming relative outperformance by the Materials Sector.
Since meeting our target XLB has already pulled back 4% from the highs.
Our US market sector analysis is an integral part of our overall macro outlook for the US financial markets because the constant process of sector rotation tends to lead intermediate term price trends in the broad US market.
We use the table below in our reports to to provide subscribers with a central location to find all of our existing market expectations for relative sector outperformance or underperformance, the month and year that we initiated the call, and how that market call has fared since we issued it. (The table in this report is about a month old. Subscribers can see a newly updated version by logging into our Research Center.)
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