Materials stocks and ETFs, such as XLB and VAW, have enjoyed ample catalysts this year. For example, the stronger dollar is also supporting mining projects where some producers are even expanding production as currency moves diminish costs, even as commodity prices have been tumbling. Consequently, with supply continuing to rise, some observers are expecting metal prices to fall and remain pressured. [Materials ETFs in Rally Mode]

However, catalysts for materials ETFs have mostly evaporated, leaving traders to lean bearish on the sector in the near-term.

Materials Select Sector SPDR