Everyone in Wall Street will be watching commodities once again. Crude Oil is trading above 80 despite the increase in inventory.
Aluminum up to 97.7cts now.
Copper up to $3.40.
Iron Ore is at its high.
Commodities are going to rally strongly again.
These commodities stocks have already rebounded about 40% from their lows.
Century Aluminum $CENX
Freport $FCX
CHALCO $ACH
United States Steel $X
Cliff $CLF
Rio Tinto and BHP $RIO, $BHP
There’s one more commodity stock that is lagging. It is Alcoa Inc $AA.
Could traders have done pair trades, shorting Alcoa and buying the other commodities stocks? Is this why Alcoa Inc is depressed at this levels?
Nevertheless, the pair trades would unwind around now as Alcoa Inc most probably has a super positive Alpha now as compared to other mining stocks.
LONG Alcoa Inc $AA
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