Ag Chem Stocks Galloping Upward

Dow Jones Chemical Index

Click here for larger image.

We've talked about the chemical stocks in this column before, but we thought it might be a good idea to revisit this group since the chemical stocks have been one of the best-performing sectors in the market over the last month; a fact by which most traders seem surprised. The last time we looked at this group we highlighted DuPont (DD Quote) and Lyondell (LYO Quote), which are petrochemical companies.

This time we want to focus on some of the specialty chemical names in the sector that are showing strong relative performance vs. the broader group. The chemical sector continues to see strong liquidity inflows. Breadth for the group made another new high yesterday, which confirms the recent highs in the sector price action and tells us that money continues to flow toward the group. ...