Industrial Sector Stocks in Focus as Infrastructure Catches a Bid

Building and Construction

Industrial and Infrastructure Stocks in Focus

The industrial sector should bounce today, as these stocks gain interest once again. Heavy equipment, manufacturing, transportation and construction-related stocks are on our radar. Above average institutional volume would confirm our interest in adding to existing positions, like CAT, MMM, and DAL.

“President Trump highlighted his plan to rebuild the nation’s “crumbling” infrastructure in his State of the Union address on Tuesday, unveiling his intentions to push Congress to approve a $1.5 trillion plan.”

Airlines and transportation stocks are part of the industrial sector. Delta stands out as one stock that has bounced at near-term support levels. If institutions continue buying, price action should follow through occur as planned. The 60.00 level target then becomes more plausible.

Technically speaking, Price action has firmed near recent volume by price support. Pre-market trading has pushed above this level, in addition, to the daily moving averages. If RSI continues higher Delta Airlines should start moving into the gap. We are watching for volume to pick up, which would signal institutions remain interested.

DAL infrastructure stocks

Additional Infrastructure Stocks 

Late on Tuesday, many industrial stocks moved off the low of the day enclosed positive. Many of the stocks are higher in pre-market trading. Caterpillar and Boeing are on our short list as potential candidates. We are also watching FDX and UPS for potential trades.

Semiconductors on Watch: AMAT NVDA

As usual, we are monitoring block trades for confirmation. SPY is still in a potential downtrend.

We will be live at 9:20 AM.

Happy trading,

Vinny



Price is King and Blocks Rule

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Vinny Gambini

Trade Fundamentals w/ Technical Analysis - CANSLIM method using high probability setups and Ichimoku Trend Analysis. Architect, Family Man and Father of three.