NEW YORK ( TheStreet) -- The industrial sector, which also includes transportation stocks, consists of 64 companies and can be traded in the Industrial Select Sector SPDR Fund (XLI) - Get Report . This exchange-traded fund, at $57.50, has a year-to-date gain of 10% versus 13% for the S&P 500. Before showing the daily and weekly charts for this ETF, some background.
The industrial sector ETF has five components of the Dow Jones Industrial Average, which has a year-to-date gain of 9.1%. One is General Electric (GE) - Get Report , which is a laggard with a year-to-date loss of 8%.
Another is 3M (MMM) - Get Report , which is up a solid 19% year to date setting an all-time intraday high at $168.16 on Dec. 23 helping the Dow 30 reach its all-time high at 18086 set on Christmas Eve.
Since we are in the middle of package delivery season, let's take a look at shippers FedEx (FDX) - Get Report and United Parcel Service (UPS) - Get Report , which are also components of the industrial sector SPDR.
FedEx ($175.50) set an all-time intraday high at $183.51 on Dec. 8. FedEx reported earnings on Dec. 17 and missed analysts earnings estimates resulting in a 11% correction from the high to $163.57 on Dec. 17. The stock has a gain of 22% year to date.
UPS ($111.90) set an all-time intraday high at $113.10 on Dec.23 and has a year-to-date gain of 6.5%.
Here's the daily chart for the Industrial Sector SPDR.
Courtesy of MetaStock Xenith
The daily chart for the industrial sector ETF shows it entered 2014 above its 200-day simple moving average (green line) at $45.45 but then declined to a test of this moving average between Aug. 1 and Aug. 8.
The industrial ETF had a correction of 11% from $54.83 on Sept. 19 to as low as $48.83 into Oct. 15. The rebound from this low to the all-time intraday high set at $57.62 on Nov. 25 totaled 18%. This high is being challenged as 2014 comes to an end.
Here's the weekly chart for Industrial Sector SPDR.
Courtesy of MetaStock Xenith
The weekly chart for industrial sector ETF clearly shows this market above its 200-week simple moving average (green line) since Oct. 2011 with this average now at $42.49.
The weekly chart shifts to positive but overbought with its key weekly moving average at $56.08. The momentum reading shown at the bottom of the graph is above the 80.00 overbought threshold at 86.30.
TheStreet Ratings team rates GENERAL ELECTRIC CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL ELECTRIC CO (GE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: GE Ratings Report
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.