Conclusion, Investment Implications, Strategy
The SPDR S&P Metals and Mining ETF (XME) is in the midst of a Sep 19 major uptrend, according to its 200-day moving average, and has recently set new all-time highs. In addition, the total net assets invested in XME (AUM) are amid a Sep 24th trend of monthly expansion while XME has also been outperforming the benchmark S&P 500 (SPY) on a quarterly Strategic basis since Oct 1st. Together, these factors establish favorable conditions for more outright strength and relative outperformance from XME and other metals and mining related assets.
XME Breaking Resistance Amid Expanding Assets & Relative Outperformance
The upper panel of Chart 1 below shows that the SPDR S&P Metals and Mining ETF (XME) is in the midst of a Sep 19th major uptrend as defined by its 200-day moving average and has recently set new all-time highs by rising above its previous 104.91 June 2021 high. The middle panel shows that the total net assets invested in XME (AUM) are in a Sep 24th trend of monthly expansion. Expanding AUM indicates near-term bullish conviction in a price advance. The lower panel shows that XME is also in the midst of an Oct 1st trend of quarterly relative outperformance versus the S&P 500.
As long as these conditions remain true, XME is likely to continue appreciating in price in the weeks ahead.
Chart 1
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Table 1
Click the table to make it larger