The SPDR Materials traded as low as $62.74 shortly after the opening bell today, undercutting Monday’s low by $0.25. Buyers immediately stepped in to drive it back into the black. They kept going until XLB was at $0.82 above Monday’s high -- a outside day.
The rally also pushed XLB above its previous all-time high from late January.
Few materials are actively traded, but there are some, like DD. It also had a outside candle. A month ago, its 50-day ( ) rose above its 200-day . That’s a potentially “Golden Cross” pattern.
Materials are cyclical companies that could benefit from the global economy reopening from coronavirus. Many also have pricing power, which is interesting with prices surging for materials like lumber and iron ore. The sector may also appeal to some investors after Chairman Jerome Powell embraced in his Jackson Hole address last week.
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