Nov
13
Materials (Canadian) — XMA.TO (ETF)
ByThe period of seasonal strength for this sector is from January 29th to May 6th. The sector also does well from November to the beginning of May. One of the questions that I get asked a lot is, “does the U.S. seasonal period for the materials sector apply to the Canadian sector?” The Canadian sector has a different composition and as a result its entry date is earlier. The U.S. materials sector has a large percentage of its holdings in chemical stocks: the Canadian materials sector has a large percentage of its holdings in gold stocks and fertilizer stocks. As a result the sector’s seasonal trade is more akin to the Metal and Mining sector as compared with the U.S. sector. This trade is setting up for a good entry mid-November.
