Contrarian Alert: Is It Time To Buy Cliffs Natural Resources (CLF)?

Posted on May 22, 2013 by

The party continues on Wall Street; investors remain bullish on stocks judging by the sheer price action as both the S&P 500 and Dow Jones Industrial Average managed to close out last week well above their all-time highs. The economic data front is sending hints of a potential downturn as manufacturing indicators remain weak; nonetheless, this has failed to put a noticeable dent in the bulls’ armor of confidence as markets shrugged off last week’s worse-than-expected industrial production data [for more market news and analysis subscribe to our free newsletter]. Not every stock is surging to record highs; in fact, one particular large-cap miner offers a risky, but compelling, opportunity for investors still looking to get a piece of the action on Wall Street. Contrarian investors should add Cliffs Natural Resources (CLF) to their watchlist because this former S&P 500 sweetheart is resting on major historical support, thereby offering a great entry point for those … See the full story here →

Posted in Commodity Trading Outlook, Commodity Trading Trends, Steel | Tagged | 1 Comment

Caution: Tin Slumps Into Bear Territory

Posted on May 9, 2013 by

Industrial metals have been on somewhat of a bumpy road so far in 2013, though recent price movements in the copper market have made investors think twice about this corner of the commodities world. Last week, copper futures soared after several encouraging reports from China, the world’s second largest economy and one of the largest consumers of the metal, helped boost optimisim for copper demand. Though copper’s outlook has improved, there is one industrial metal that has not benefited from the rally: tin [for more industrial metals news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Copper, Industrial Metals, Tin | Tagged | Leave a comment

Copper Prices Signal Bear Market Is Near

Posted on May 3, 2013 by

Copper is among the most practical commodities in the world, as the industrial sector relies heavily on the material for a number of uses. Not only does it have wide applications in the industrial world, but the economic space as well. With the nickname “Dr. Copper,” the reddish-brown metal is often used as a proxy for the global economy as a whole, precisely because of the demand created by the industrial world [for more copper news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Commodity ETFs, Commodity Futures, Copper, Industrial Metals, News and Current Events | Tagged | 1 Comment

Earnings Preview: Good News For Oil, Bad News For Gold And Copper (SCCO, TRP, NEM, SU)

Posted on April 25, 2013 by

Earnings season for Q1 2013 is well on its way, with several bellwether commodity stocks already reporting better-than-expected results. Agribusiness giant Monsanto Company (MON) posted earnings that significantly beat out estimates: earnings rose 22%, while profits came in at $1.48 billion. Meanwhile, Halliburton (HAL) reported an unprofitable quarter, though the company added $1 billion to reserves tied to litigation involving the Deepwater Horizon rig explosion. Barrick Gold (ABX) also beat analyst expectations, clocking in an EPS of $0.86 [for more oil news and analysis subscribe to our free newsletter].

Posted in Commodity Producers, Copper, Earnings, Earnings Reports, Energy, Gold, Industrial Metals, Natural Gas, Precious Metals, WTI | Tagged , , , | 6 Comments

Copper Drops Into Danger Zone

Posted on April 18, 2013 by

Metals across the board have suffered steep losses in recent days, with gold’s alarming 9% one-day drop rattling the markets and investor confidence. And while gold remains as one of traders’ top concerns, another metal’s volatile movements has been raising some red flags. Yesterday, copper futures for April delivery tumbled 3.6% to $3.1880 a pound, marking the lowest level since October 2011. The metal has almost dropped 20% from its most recent high, so the probability of copper entering bear territory is quite likely [for more copper news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Commodity Futures, Copper, Industrial Metals | Tagged , | Leave a comment

5 Must-Watch Commodity Earnings This Week

Posted on April 15, 2013 by

With Alcoa (AA) kicking off earnings season last week, investors will spend the next few weeks combing through quarterly statements from their favorite commodity firms. Though Alcoa beat EPS estimates and saw a healthy net income, revenue fell short, leaving a somewhat mixed feeling for the stock. What is perhaps more important than the reports themselves is the particular outlook that each company provides; 2013 has been anything but kind to commodities and investors will pay extra attention to forecasts for the near future [for more commodity news and analysis subscribe to our free newsletter].

Posted in Copper, Energy, Industrial Metals, MLPs, Natural Gas, News and Current Events, WTI | Tagged , , , , , | Leave a comment

Nucor (NUE) Fights To Stay In Trading Channel

Posted on April 10, 2013 by

Last week’s disappointing employment report put a dent in the bulls’ confidence; however, the parade has resumed with full force this week thanks to a solid start to earnings season with better-than-expected results from Alcoa. While major equity indexes have resumed their ascent to record highs, the skeptics continue to call for a market top in the face of rising prices. With no major fundamental changes taking place over the last few weeks, it’s difficult to gauge when the long-overdue correction will actually strike, as traders and investors alike have more reasons to buy on the dips rather than take profits [for more market news and analysis subscribe to our free newsletter]. Steel manufacturer Nucor Corporation (NUE) presents an intriguing opportunity at the moment that warrants a closer look from swing traders looking to get a piece of the action on Wall Street.

Posted in Steel, Trading | Tagged | Leave a comment

Earnings Sneek Peak: Alcoa (AA)

Posted on April 5, 2013 by

One of the biggest names in aluminum production and exploration, Pittsburgh based Alcoa (AA) is one of the best known firms in the commodity world. The company operates in over thirty countries and is only rivaled in size by international firms Rio Tinto (RIO) and Rusal. Falling prey to a struggling industrial sector, Alcoa and many other mining corporations have been feeling the pressure since the recession began in late 2008. With their first quarter earnings report coming up on Monday, all eyes will be fixated on the materials giant [for more metals news and analysis subscribe to our free newsletter]. 

Posted in Aluminum, Commodity Trading Outlook, Industrial Metals | Tagged , | Leave a comment

Freeport-McMoRan (FCX) Nears Major Support Level

Posted on April 3, 2013 by

The bull train is surging full steam ahead on Wall Street with the S&P 500 Index reaching five-year highs while the Dow Jones Industrial Average continues its ascent into uncharted territory. Investors have had few reasons to take profits over the past week with Cyprus debt drama slowly fading away while economic data releases continue to support a bullish case; this week alone construction spending and factory orders data figures have trumped expectations, while key employment data is on tap for this Friday [for more market news and analysis subscribe to our free newsletter].

Posted in Commodity Trading Outlook, Commodity Trading Trends, Industrial Metals, Trading | Tagged | 1 Comment

A Brief 2000-Year History Of Copper Prices

Posted on March 29, 2013 by

We have previously talked about the historical use and value of gold and silver, and now we turn to copper. Right off the bat, copper is a very different metal. Like gold, it’s easy to work with for relatively simple tools and technologies, but unlike gold, copper was (and is) quite common and easy to find. Copper has been mined and used for at least 10,000 years and likely vied with meteoric iron as the metal most used in tools [for more copper news and analysis subscribe to our free newsletter].

Posted in Academic Research, Copper, Gold, Industrial Metals, Precious Metals, Silver | Leave a comment