Stock market sectors that are outperforming the market
January 27, 2012
The stock market is off and running so far in the first month of the new year with the Dow and S&P 500 up almost 5% and the NASDAQ up over 7% year to date.
After the Fed meeting on Wednesday and the recent market strength, the business news and overall market sentiment is extremely bullish. In fact on Thursday morning one television business channel had its early morning reporters telling us “Its party time on Wall St.”, of course as you know the market seldom does as everyone expects and the major indices closed down on Thursday.
There are many investors that believe: as January goes, so does the year. Now while I don’t personally believe that 20 days worth of trade data can predict the direction of the entire year, I do think we can benefit from taking a closer look at the sectors that are leading the way so far. It is not often that the leading sectors of a previous rally remain the leaders in a new bull market, and this year seems to be no different. The top 2 sectors we highlight today are not only outperforming the market indices, but are new to the leaders list. Lets take a look.
Building: As you know this sector has been one of the hardest hit in recent years but as of late there seems to be new found optimism for this group,YTD this group is up almost 9%. The stocks listed below are the leaders in this space.
H.B. Fuller Co. – (FUL) – Chart
Company website This stock has been making our new 52 week high page almost daily for the last week or so and volume has been strong as well.
Primoris Services Corp. – (PRIM) – Chart
Company website A fairly thin traded stock with average daily volume just over 200k shares is looking as if it may hold support at the 50 day ma. around $15 and could be ready to break out to new 52 week highs.
Valspar Corp. – (VAL) – Chart
Company website Volume has held up well since this stock broke out above $40 and has been making new 52 week highs the last 10 trading sessions.
Machine: This is also a sector that is outperforming the major indices so far with the group up 8.5% YTD.
Ametek Inc. – (AME) – Chart
Company website After a long and fairly deep base, this stock is in a nice up trend and right at 52 week highs, volume has been strong since the $40 range.
Sauer-Danfoss Inc. – (SHS) – Chart
Company website A favorite of mine, this thin traded stock is nowhere near a 52 week high but is showing nice strong volume as it builds the right side of its base.
Dover Corp. – (DOV) – Chart
Company website This stock is trading 10% below 52 week highs but is also showing strong volume on the right side of its base.
That is all for now,
Best Wishes, $$$, ET.
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