The bulls held the line today and have a chance to take the ball here. I am seeing many great looking long setups after today’s trade, and love the fact that copper may be putting in a double bottom.
The $XLF looks ready to run on further strength and so do many other industries. Here are a few things I’m watching headed into Friday’s trade.
If the $XLF trades above $13, I may jump in to the $FASmobile:
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You got to love the way these steel names are setting up, my favorites: $X & $AKS
$X
$AKS:
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I’m also looking at the Ags: $MOS, $POT, $AGU:
$MOS:
$POT:
$AGU:
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Looking to add some coal to my portfolio, I’m a buyer of $ANR with strength in the group:
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And, here’s a name I added in the portfolio today, $CIEN:
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Reminder: It is option expiration tomorrow, so be on guard for anything. But, if copper stay strong throughout the day, I am a buyer of equities.
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look to other worldwide markets… they seem to lead US markets, just like copper is. Asia is in the red atm. not much, but enough to make me think twice about going long…
this setup is mostly about which market, which country will first realize that we are in deepest shit… the rest of the world will follow.
this bull run is nothing but trading on hope (and change). once the money injections from taxpayers via government bailouts begins to dry up, the shit hits the fan and we’ll go well below 2009
agreed, and when we reach that point, I will be positioned accordingly.
I buy into the the theme that we have to eat and food preferences are increasing with increased living standards so that and mandated ethanol all around the world underpins the volume side of the fertilizer demand equation. The price and margin side is less compelling as new entrants are drawn into the market for example BHP with an 8 million tonne per annum mine and more similar sized ones possible. Now it takes time and Billions to bring these to market but I feel the POT price has current margins built in forever.
The steel plants I have visited in the USA reminded me of something out of Dickens. Old and under invested and worse than the ones that have been shut in Australia. For the last several years I have believed that they survived as marginal producers because of the incredible demand in China. When China downturn hits, even a short few year downturn, the steel prices will be in the pits and I would want to know the cost structure of these US steel producers before taking a long term position. They may be fine but I would not want to invest on just stock price analysis alone.