Wagner believes IYM will hold support at its 10-day moving average before resuming its uptrend “within the next few days.”
The ETF’s top-10 holdings combine for nearly 60% of the fund’s weight. That group incudes Monsanto (NYSE: MON), Dow component DuPont (NYSE: DD) and Dow Chemical (NYSE: DOW).
A rosy technical assessment of materials ETFs jibes with upcoming seasonal trends. November marks the start of the best six-month period in which to own stocks, including cyclical sectors.
“Rotating into the Consumer Discretionary, Industrials and Materials sectors from November through April, rather than back into the market, beat the S&P 500 by 640 basis points per year, and resulted in an even lower standard deviation of 13.7,” said S&P Capital IQ’s Sam Stovall earlier this week. [ETFs for Buy in November]
iShares U.S. Basic Materials ETF
