TTG New Month Observations
AIRR PAVE SLX XSD / ATKR ALSN DE PI CRUS NUE
We are onto a new month of trading and some key takeaways / observations / and charts I am watching.
While the indices chop / lean to the downside as SPY finished -2.5% in Feb, there are areas of strength in the market
Defensive areas underperformed, Feb performance: IYR -6% XLU -5.9% XLV -4.6%
Where I see strength in this market: Industrials / Infrastructure / Auto Parts / Metals / Steel / Semis
Note the SMH (Semis) ETF was +1% in Feb, one of the few Sector / Group ETFs positive in Feb
Interest rates have moved higher TLT -4.8% in Feb and the 10yr Yield is ~ 4% , this is a headwind for equities
Let’s review a couple sector / group ETFs
AIRR - American Industrial Renaissance ETF
This is an ETF I went long back on 2/6/23 as it covers some specific areas of the Industrials like Engineering & Construction, Electrical Components & Equipment, Building Materials, Environmental (see components below). Notice what it is doing… breaking out to all time highs while the rest of the mkt is not, that is Relative Strength (see second chart)
AIRR vs SPY
PAVE - Global X U.S. Infrastructure Development ETF
Another play Industrial / Metals that is close to breaking out, watch $29.56 for a break out of the recent range.
SLX - Steel ETF
Weekly chart below, this is close to taking the next leg higher.
XSD - Equally Weighted Semis ETF
Weekly chart: A small pull back from the recent highs on 2/2. If the ETF can hold $195.13 , this could setup and trend higher in coming weeks / months as it is above its ‘23 Value Area.
Individual Charts from the groups above
ATKR - Atkore
Atkore Inc manufactures and supplies metal products and electrical raceway solutions. The Company offers steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems, and building components. Atkore serves customers worldwide (Bloomberg)
- I am long vs top of Mar Value Area $146.86
ALSN - Allison Transmission Holdings, Inc.
Allison Transmission Holdings, Inc. manufactures fully-automatic transmissions for medium and heavy-duty commercial vehicles, medium and heavy-tactical U.S. military vehicles, and hybrid-propulsion systems for transit buses. The Company's products are used in a variety of applications.
-breaking above its Mar Value Area , watch $48.13 as a level to trade against.
DE - Deere
Deere & Company manufactures and distributes a range of agricultural, construction, forestry, and commercial and consumer equipment. The Company supplies replacement parts for its own products and for those of other manufacturers. Deere also provides product and parts financing services. Deere and Company extends its services and products worldwide.
-watch for a break out of the Mar Value Area, $422.95
PI - Impinj, Inc.
Impinj, Inc. provides radio-frequency identification solutions for identifying, locating, and authenticating items. The Company offers radio chips, gateways, readers and antennas, and software. Impinj serves customers worldwide.
-this Semi had recent insider buying, watch for a break of Mar Value Area, $133.25 for a breakout
CRUS - Cirrus Logic, Inc.
Cirrus Logic, Inc. is a fabless semiconductor company. The Company develops audio and voice IC and software solutions for mobile communications, automotive entertainment, and consumer audio applications. Cirrus Logic is headquartered in Austin, Texas.
-can trade this vs $102.31 support (bottom of March Value Area)
NUE - Nucor
Nucor Corporation manufactures steel products. The Company's products include carbon and alloy steel, steel joints, steel deck, cold finished steel, steel grinding balls, steel bearing products, and metal building systems. Nucor also brokers ferrous and nonferrous metals, pig iron, HBI, and DRI, supplies ferro-alloys, processes ferrous, and nonferrous scrap.
-can trade this vs $171.07 support (top of March Value Area)
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