In today's post, we're talking about a group of stocks that have emerged as the 'Generals' of the current bull market.
You are thinking, “it must be tech.”
It’s not.
Industrials have been just as strong as tech stocks but with far better internals. No other sector has experienced the kind of broad participation we’re seeing from industrials. These are the real market leaders.
Historically, the Industrial sector is the one with the highest correlation to the overall market. So, the strength of these stocks is also sending us very bullish information about the health of this bull market.
This is great news, but today’s note is about looking under the hood and finding the best opportunities in the various industrial subgroups.
As one of the most diverse sectors, investors have plenty of options in the world of industrials. We did the work and dug into this space to find out what the strongest areas are and where we want to put our money.
Let’s get into it.
Here’s the Large-Cap Industrial Sector $XLI breaking out of a multi-year base:
Welcome back to Under the Hood, where we'll cover all the action for the week ended March 1, 2024. This report is published bi-weekly, in rotation with The Minor Leaguers.
What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.
We use a variety of sources to generate the list of most popular names.
There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.
These days, it’s all about cattle futures, orange juice, or cocoa hitting an all-time high.
I’m sure everyone down at the NYMEX or the folks over at the CBOT in Chicago are having a ball. But what about the stock traders trying to get a piece of the action?
Sure, the energy trade is starting to work again. But gold has been a range-bound mess since the summer of 2020. And gold mining stocks have been an absolute dumpster fire.
It just doesn’t make sense amid a commodity bull run…
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let's dive in and take a look at some of the most important stocks from around the world.
