MEA interesting, industrial suppliers rising
A run thru Ich could take it ot 1.75/2.00 as a possible, assuming scrap qualifies as an industrial supplier. Little IGC has been twisting all around as market tries to figure what is going on with industrial materials.
Chip Anderson, StockCharts.cxx newsletter had this. Also high on Healthcare and Small Caps in gerneral.
INDUSTRIAL SUPPLIERS WAITING THEIR TURN?
by Tom Bowley | InvestEd Central
The Dow Jones US Industrial Suppliers Index ($DJUSDS) experienced a HUGE bull market run off the 2009 lows through mid-2013, quadrupling in value during the period. Momentum on the weekly chart turned negative, as evidenced by the long-term negative divergence on its MACD. As a result, this index has gone nowhere for the past 15 months or so as money has rotated away from the group into other areas like semiconductors, transportation, etc. The good news is that this basing has set up what could be another powerful move to the upside as money rotates back into what is quickly becoming a very attractive area of the market technically.
The weekly RSI on the industrial suppliers has not reached overbought territory at any point during the past year. A breakout above key technical price resistance near 320 could lead to a lengthy period of relative strength vs. the S&P 500. Currently, the relative strength line is downtrending, but I wouldn't overlook the bullish continuation pattern and the improving volume trends in 2014, not to mention the strengthening weekly MACD off the recent centerline test. These bullish patterns do require a confirming breakout, but moving through 320 on the index is likely to send many traders back into the industrial suppliers stocks.
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