Eaton Corp (ETN) – The industrial sector rebounded strong Thursday as CAT rallied after its earnings report. XLI Industrials have a strong seasonal bullish bias in November with the ETF being higher 10 out of the last 10 years with an average return of +4.76%. With this sector still a little off from new highs it can play catch up to the overall market as other sectors may pause. ETN is a leading industrial name that provides solutions that help its customers manage electrical and mechanical power. Over the last 10 years, ETN has had its strongest performance in November, being up 80% of these years and an average return of +5%. Earnings are due next week on 11/2 and ETN has closed positive the day after earnings 6 out of the last 8 quarters. 

The stock held the 150 level on the recent September pullback which was just ahead of the YTD VPOC level near 145. Now back above all key moving averages as the 21 EMA bull crossed above the 55 EMA. RSI is at 63 indicating a bull trend and not much resistance above here on the way to new highs over 171. First Fibonacci extension target into new highs shows up at 178 and then 186. ETN has seen several recent bullish options trades positioning for upside into 2022. On 10/15 a buyer of Jan 2023 $155 calls for $1.5M and also on 10/19 a Jan 2023 $140 put sale to open for $465k.