Basic materials ( $IYM ) breaking out after YEARS and literally surging is another positive sign for the risk-on assets space.

The basic materials sector is highly cyclical and often acts as a leading indicator of economic health. So NO RECESSION in sight!

Here's why rising performance in this area is bullish:

1.) Strong industrial and manufacturing demand — Companies in basic materials (e.g., mining, chemicals, metals) supply raw inputs for construction, autos, infrastructure, electronics, and more. Rising prices and sector strength usually signal increasing orders, production, and investment in the "real" economy.

2.) Early-cycle signal — Materials tend to outperform during economic recoveries and expansions, as demand for commodities rebounds before consumer spending fully kicks in.

This points to a healthy, growth-oriented economy rather than recession fears.