Materials (USA)
ByThe materials (U.S.) sector typically does well from January 29th to May 6th. From 1990 to 2008 the materials sector has produced an average gain of 8.0% and has been positive fourteen out of twenty times.
Currently the technical pattern on the U.S. materials sector, as represented by the ETF, XLB, is positive – the sector has recently broken out of its trading range.
The U.S. materials sector is substantially different than the Canadian materials sector as the U.S. sector has very little gold and approximately 60% chemical companies.
Because of the relatively weak seasonal opportunities for the Canadian materials sector in January, investors should consider reducing their position in the Canadian materials sector over the short-term and increasing their position in the U.S. materials sector in January.
