Leaders and Laggards: Commodity Stocks
With four months complete, 2014 has been a mixed bag for commodity producing stocks. While broad equity markets are hovering at about breakeven for the year, many commodity intensive stocks have made big pushes in both directions. Below is a look at some of the sectors that are both leading and lagging through the first four months of 2014:
Commodity Stocks To Buy On The Dip: MON, NUE, PSX
U.S. markets have managed to rebound ferociously over the last two weeks as bargain shoppers stepped in following the Fed stimulus-fear induced sell-off which started on 5/22/2013. With earnings seasons upon us however, the bull may be in for a rude awakening as volatile trading and profit taking can sweep over Wall Street at the slightest sign of industry bellwethers missing the mark and revising their outlooks[for more commodity futures news and analysis subscribe to our free newsletter].
Contrarian Alert: Is It Time To Buy Cliffs Natural Resources (CLF)?
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
Nucor (NUE) Fights To Stay In Trading Channel
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.
United States Steel Corp. (X) Looks Like A Steal
The bull train continues to roll ahead as generally upbeat corporate earnings haven’t given investors enough reason to take profits off the table. Major equity indexes have yet to deviate from their steep upward trajectory since the start of 2013, with the Dow Jones Industrial Average and S&P 500 both posting fresh five-year highs and breaking past their psychologically significant 14,000 and 1,500 levels respectively. Amid the improving sentiment on the equity front, commodity prices have been all over the board, making it even more frustrating for those still waiting on sidelines to jump in; some are hesitant to go long given the stellar gains year-to-date on Wall Street, while others are fearful of missing out on the next bull market [for more market news and analysis subscribe to our free newsletter].
