The Agricultural Chemicals group is still the only area of the market that is acting well.  As seen in the chart and table below we list the issues that make up the group and could continue to move.

Groups that act strong during times of market weakness always stand out as they show a conviction on the part of institutional buyers.  In a tape when buyers could easily walk away such as last week, a group making new highs such as the Machinery/Pumps group definitely stands out.  Below we list the group components as well as highlight the group chart, which is at new highs.

Several weeks back we highlighted commodity stocks as showing strong technical strength within the context of an otherwise weak tape.  As seen in the chart below of the Powershares DB Silver Fund, scored new highs yesterday.  This is just one of many commodity based ETF’s scoring new highs.  This broad based participation shows good breadth and suggests the commodity advance can continue even if there are pullbacks along the way.

As seen below the S&P 400 Mid Cap Coal Index broke out last week above significant resistance.  The move on the breakout had good sponsorship with many names participating in the advance.  Pullbacks or a consolidation may provide a good entry point on many of these names.  

The top rated coal stocks in FusionIQ are as follows: 

·         FCL   90 FusionIQ Master Ranking

·         MEE  87 FusionIQ Master Ranking

·         ACI   81 FusionIQ Master Ranking

·         CNX  79 FusionIQ Master Ranking 

S&P 400 Mid Cap Coal Index