CHEMICALS HELP LEAD MATERIALS HIGHER -- ALBEMARLE AND DOW HOLDINGS HIT SIX MONTH HIGHS -- ALCOA AND NUCOR GAIN MORE GROUND
MATERIALS LEAD MARKET HIGHER... On a strong market day, six sectors are in the black with materials in the lead. Chart 1 shows the Materials Sector SPDR (XLB) gaining 2% today to hit a new record. Its relative strength line in the upper box is bouncing as well after declining throughout August. It's being led higher by stocks tied to industrial metals and chemicals. We'll start with the last group. That's because chemical stocks are among the day's top percentage gainers in the XLB. Starting with Albemarle.
ALBEMARLE NEARS TEST OF HIGH...Chart 2 shows Albemarle (ALB) climbing more than 5% today to reach the highest level in more than six months. The specialty chemical stock is nearing a test of its February high.
DOW HOLDINGS BREAKS OUT... Chart 3 shows Dow Holdings (DOW) also rising today to the highest level in more than six months. The commodity chemical stock is one of today's top XLB percentage gainers.
ALCOA AND NUCOR HAVE STRONG DAYS... I mentioned that industrial metals stocks were having a strong day. Copper miner Freeport McMoran (FCX) is reaching a two-year high. Aluminum and steel stocks are also bouncing. Chart 4 shows Alcoa (AA) trading higher after a lower open and staying well above its 200-day moving average. Chart 5 shows steel maker Nucor (NUE) doing the same.
