As iron ore prices skyrocket, AKS will experience severe shrinking margins. United States Steel is in better hands but will face weakness as well.
As the housing market continues to be weak, construction spending will not increase significantly.
Steel prices face high resistance as buyers are not willing to buy at a higher price with the current economy.
For the short term, Steel stocks are a sell, while iron ore stocks are a buy. (to hedge risk).
Double tops are forming for both AKS and X, and technical traders will target this formation to short these stocks.
If you are interested in a short, time it with the market correction. The DOW is still facing buying pressure as retail continue to flock into stocks.
No comments:
Post a Comment