This market has been very rotational as buyers move from one sector to another. After a long period of underperformance, one area of strength the past 6 weeks has been the infrastructure stocks which were an area of emphasis back in 2007 and early 2008. This is a group that does well mid to late cycle as they require a stable financial environment for long term projects.... hence per the 'playbook' (the same playbook that said to buy early cyclical names a year ago) [
Mar 7, 2010: CBSMarketwatch - Riding the Rally, How to Money in the Bull Market's 2nd Year] this is a go to group. The charts are showing fantastic strength across the board among the major players.
Recent Spikes
Fluor (FLR)
Jacobs Engineering (JEC)
Foster Wheeler (FWLT)
Straight Up Without Pause Since August
Shaw Group (SGR)
McDermott (MDR)
KBR (KBR)
Chicago Bridge & Iron (CBI)
[
Dec 3, 2008: Back of Envelope Look at Infrastructure Sector]
[
Jan 11, 2008: Infrastructure Companies Cleaning Up on Contracts]
[
Nov 2, 2007: Time to Add to Infrastructure]
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