We just flipped the script—and it happened fast. In a matter of weeks, we’ve gone from full-blown washout to a full-speed rebound.
We’re in the middle of a textbook V-shaped recovery. And we’re seeing rotation back into risk assets, which supports the bullish action in the broader market.
Just look at Industrials $XLI. It is now the first sector ETF to reclaim its all-time highs and complete the V.
This group covers everything from transportation and construction to defense and manufacturing. It’s as diverse as it gets—and it also has the highest correlation to the major indexes.
When Industrials are leading, the broader market tends to follow.
It also speaks of an overall healthy environment for risk. There is a lot of offense in this sector.
As long as XLI holds above 145, the path of least resistance is higher.
And if that’s the case, I’ll be looking to add more exposure to individual names.
Just last week, I bought the breakout in Uber—one of the largest components of the index.
It’s a good group to watch. A lot of strong setups. A lot of places to go fishing.
It’s been one hell of a run—everything’s working. Last week alone, we scored 6 doubles with our Breakout Multiplier strategy.
