A Many Splendored Thing

While the AI trade continues to have the pizzazz, despite the AVGO selloff today, a fair amount of commodity-related stocks are quietly tightening up and steadily improving from a technical perspective. I still maintain, and have repeated this ad nauseam with Members, that until we see the AI trade unravel and reset it is tough to be overly-aggressive with longs in virtually any sector given how much capital is crowded at the top of the market in those tech firms. In other words, no one is likely immune from the baby being washed out with the bathwater temporarily whenever the AI trade comes apart at the seams. 

But that does not change my long-term bullish view on commodities, commodity stocks, and bonafide value dividend paying stocks, to boot.  

Among some quiet plays which are tightening up in commodity land, we have CMC on the first daily chart, below, related to the steel industry. CMC recycles scrap metal and uses electric arc furnaces to produce finished steel products. You can see the tight base in the context of an overall uptrend.

And the second daily chart is NXT, easily one of the best and most consistent performers in the solar sector for quite some time now.