Materials Sector Surges
08/18/2010 10:59 am EST
A strong bid for Potash (POT) gave the market a boost on Tuesday as the materials sector rallied sharply. The relative performance analysis turned clearly positive for the materials over the S&P 500 on July 20 as the downtrend in the RS was convincingly broken. Additional resistance was overcome on Tuesday, which is very positive and indicates the recent highs will be overcome. Since the close on July 20, the materials are up 4.3% versus just a 0.8% gain for the S&P 500.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.