Monday, August 04, 2008

Staying Away From Steel

While I am decidedly bearish on most commodity sectors, the one sub-sector I am staying away from is steel. Steel stocks are all over the place.

Take a look at the sampling below. Two steel stocks have made huge upside moves and could be reversing the recent topping pattern (AKS and X). MTL, ZEUS and RIO are in ugly downtrends. Then there is MT, which is caught in the middle.

I'm going to stick with the easy commodity trades. I feel much more comfortable trading a sector where a majority of stocks are headed in the same direction, like indpendent oil and gas.

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