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Besides the Financials, if there is one sector of the market that will not have fond Summer memories, it is the Industrials. The chart below shows the relative strength of the sector versus the S&P 500 over the last year. When the line is rising, the sector is outperforming the S&P 500 and vice versa for a falling line. After months of consistent outperformance, the Industrials sector fell off a cliff in June and remains near its lows for the year in terms of relative performance.

Given the fact that individual stock correlation is near record highs, one would assume that the groups within the overall Industrial sector have been equally bad this year. That's correct for the most part. Looking at the performance of the Industrial sector groups shows that Trading Companies is the only one up on the year. Furthermore, there are only two stocks in the Trading Companies group, and collectively they account for less than 2% of the sector's total market cap.

Source: Not A Summer To Remember For The Industrials