The Chemical Brothers Are Galvanized

The chemicals space has been acting much better of late, coinciding with the bounce in oil. Typically, the chemicals can benefit when energy is in vogue with investors.

But beyond energy, the industry also seems ripe for consolidation, with plenty of logical buyout targets. 

Although my FMC long, which we entered into several sessions ago inside Market Chess Subscription Services, did not get bought out it did pop nicely today off news of them acquiring a chunk of DuPont's crop protection business--I expect similar types of deals to become the norm in this space. 

We chose FMC because it had the best technicals of a solid group of names. But we also have an eye on ALB, which has lithium exposure much like FMC does. CBT is another one worth of attention. 

Overall, the chemicals are galvanized and I suspect this sector will be worthy of our attention going forward as it should outperform during those periods when the market is constructive.