After we identified 3 global stock markets which are bullish in 2017, we provide in this post 4 U.S. stock market sectors that could deliver above average returns in the first months of 2017. We focus in this post on booking profits on the shorter term, say a period of 3 months after these markets confirmed a breakout.

The AUTOMOBILE STOCK MARKET SECTOR has a potentially very profitable setup. As seen on the first chart, the sector broke out in November, and is now testing its breakout level. Investors should be a bit patient at this point, as this level really must hold! If it does not hold, it would be a false breakout, and investors do not want to be long in such a scenario. If the breakout level holds, investors can either buy the ETF or select 2 or 3 stocks in that sector.

Note that we covered this as one of our favorite stock market sectors in this recent post The Best 5 Stock Market Sectors As 2017 Kicks Off.

The SEMICONDUCTORS STOCK MARKET SECTOR has very strong momentum. We were under the impression that this sector would pull back, which it didn’t. That implies there is a lot of bullish energy. Typically, such a situation leads to higher prices. Stocks like Nvidia (NVDA) and AMD are pulling this sector higher. Although most semiconductor stocks are bullish, we feel that it’s mostly a party for the happy few. That leads us to be slightly cautious, and not go all-in this sector.

There is a potential for COPPER MINERS to outperform the rest of the stock market. It all depends on the behavior of the copper price. IF copper breaks out, above $2.60 as shown on the next chart, then copper miners would go ballistic. The copper market is known to be very aggressive once it starts trending. It goes much higher and lower in a short period of time. Copper miners like FCX must be in your portfolio once copper breaks out.

Another commodity stock market sector which we are watching very closely: URANIUM MINERS. Investors should not anticipate a breakout until it is a fact. The uranium sector is very volatile, so it carries very high risk. The point is that almost all metals rallied significantly in 2016, but uranium did not. It spent the whole year forming a solid base. We are very excited to see a higher low in November, compared to the January/February lows. If this market breaks out, uranium miners will go ballistic, so quickly entering but also exiting in time will be the key challenge.