The Next Explosive Bottoming Formation: Steel

Back in December we successfully identified and swing traded the bottoming formation in gold miners, followed by energy/oil/gas in early January.  Often when one or two sectors show this formation, other related sectors will follow.Steel is showing signs that it is the next bottoming formation candidate.  This sector does not have an ETF to trade, so... Continue Reading →

Four Reasons to Sell Steel

The steel sector, which has been one of my favorites over the past year, has undergone a change in character that now puts it on my "short watchlist." Four elements make it an attractive short:1. Signs of distribution, with high volume down days accompanied by low volume updays.2. Break of the 200 day moving average,... Continue Reading →

Today’s Trades: SYNL and ZEUS

Both of today's trades came from last night's journal. As I noted last night, I like the action in steel stocks. I bought: 400 shares SYNL at $39.12 400 shares of ZEUS at $32.90.Both stocks made confirmation moves following low volume pullbacks.I am heavily weighted in steel stocks, with these two and STLD, so I... Continue Reading →

Today’s Trade: SSRI

I've been eying metal related stocks for a short, and SSRI (Silver Standard Resources, Inc.) seems to be rolling over for a retest of last week's lows. More than a few elements make this an attractive short.1. The low volume pullback seems to be stalling right at resistance.2. The two day RSI made a lower... Continue Reading →

Chart: STLD

Steel has been one of my favorite sectors over the past few months, with STLD being the trade of choice. Notice that the 50 day MA and the gap level converge at the same point. It will be interesting to see if the stock can hold above this level ($35.75-36). If the bulls can't hold... Continue Reading →

Today’s Trades: RATE and AKS

I bought 500 shares of RATE at $42.53. The stock spiked up over resistance on strong volume and has now pulled back on diminished volume, printing an ideal NR7 entry. I bought 500 shares of AKS at $22.08. As you guys know, I love steel right now. I picked AKS from last night's watchlist after... Continue Reading →

Today’s Trades: EWZ and RIO

As discussed last night, EWZ looks attractive as a pullback candidate, so I bought 500 shares at $46.10.I bought 400 shares of RIO at $32.25. I've been waiting for a decent entry in a steel/metal stock for quite some time now, and finally found a decent pullback. I placed my stop at $30.90, just under... Continue Reading →

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