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Industrials Key to U.S. Economic Growth in 2013

NEW YORK ( TheStreet) -- The U.S. economy is sputtering along at a slow pace that is too anemic to bring down the unemployment rate. A key to an accelerating U.S. economy comes from companies in the industrial products sector.

Strategists are telling investors that ending the overhang of the fiscal cliff and the continued quantitative easing programs of the Federal Reserve will help this sector lead. I am not that optimistic, but the 10 stocks I am profiling today can still be considered as buy-and-trade candidates.

My benchmark for the industrial products sector is the Industrial Select Sector SPDR Fund (XLI) ($37.22) which set a 2012 high at $38.53 on Dec. 19. Since then the daily chart has become negative with the ETF above its 50-day and 200-day simple moving averages at $36.98 and $36.31. The weekly chart below ended last week with a positive profile with rising momentum and with Friday's close just above the five-week modified moving average at $37.15. My monthly value level is $35.21 with weekly and annual pivots at $37.20 and $37.74 and quarterly risky level at $39.58.

Chart Courtesy of Thomson/Reuters

At we show the industrial products sector 11.3% overvalued with the machinery-construction/mining industry 26.6% overvalued and the machinery/general industrial industry 7.6% overvalued.
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GDI $0.00 0.00%
CAT $73.67 -0.77%
DE $81.18 -1.20%
IR $64.92 0.11%
XLI $55.39 0.16%


Chart of I:DJI
DOW 17,700.50 +49.24 0.28%
S&P 500 2,053.78 +2.66 0.13%
NASDAQ 4,725.5250 -0.1140 -0.00%

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