An Overbought Stock Market Faces Down the Stimulus Stalemate – Above the 40 (August 14, 2020)

Stock Market Statistics AT40 = 76.1% of stocks are trading above their respective 40-day moving averages (DMAs) (6th day overbought)AT200 = 46.3% of stocks are trading above their respective 200DMAs VIX = 22.1Short-term Trading Call: cautiously bullish Stock Market Commentary While the politicians in Washington D.C. play a game of chicken with the economy, the … Read more

A Bearish Drop In Steel Stocks

It was September 17, 2014. Not even a month ago. U.S. Steel (X) enjoyed another gap up just 6 weeks since it printed a 19.4% post-earnings gain. The headline drivers for the latest pop were: 1) a price target boost from Goldman Sachs (GS) from $47 to $58, 2) X’s announcement of strategic business actions, … Read more

The Breakout In Steel Stocks Gains Momentum

Lately, it seems I have been pointing out more and more stocks in breakout formations. It makes the skeptic in me a little wary and nervous, but I will keep rolling with what works. And steel stocks have finally started working over the past month. I have to assume that the market is seeking out … Read more

The World Steel Association Projects Steel Demand to Return to 2008 Levels

The World Steel Association (worldsteel) forecasts for 2010 confirm my earlier view that steel demand (and production) most likely bottomed this year and some kind of recovery is underway. Worldsteel’s forecasts indicate that demand for steel in 2010 will return to 2008 levels after contracting in 2009 by 8.6%: “The World Steel Association (worldsteel) is … Read more

What Is the Deal with Steel Production and Prices?

Last week, I noticed media headlines screaming the horrible news that “Crude steel output in 2009 to hit lowest level in 40 years.” As I searched for the direct source of this quote from Japan’s Ministry of Economy, Trade, and Industry (METI), I stumbled upon its “Preliminary Report on Iron and Steel, Non-ferrous metal, and … Read more

Steel Dynamics Increases Guidance But Still Waiting for Non-Residential Building and Stimulus

Steel Dynamics (STLD) has steadily rolled out increased guidance over the past few quarters. Last night, STLD increased July’s earnings guidance from $0.10 to $0.20 per diluted share to $0.20 to $0.25. This strength has come from orders and volumes in flat-rolled steel and metal recycling. Because STLD has yet to see any impact from … Read more