Wednesday, August 16, 2006
Sector Spotlight: Metals
The CPI data came in as expected. Hence, the market has the green light to go higher.
Frankly, even the expected inflation data is too high in my opinion. Nonetheless, the market God's smile upon "as expected" with regards to inflation and jolt the market higher.
So, my convictions tell me the market will continue to trade up, unless "peace in the Middle East" unravels.
Today's market is led by gains in Metals, Homebuilders, Semiconductors and Networkers. In my humble opinion: a very nice combo for a sustainable, yet short term, rally. Short term meaning less than 1 month.
Regarding my shorts: I will be covering them all-- in an attempt to lever myself to this rally as aggressivley as I can.
The following metal stocks are showing some mojo:
ERS +5.4%
RTI +3.9%
TIE +3.5%
BHP +3.1%
RTP +3.0%
X +2.7%
NUE +2.6%
NOTE: The energy sector is rebounding nicely today, despite oil going lower. Furthermore, natural gas stocks are in the leadership position, with gains in: NGAS, BMD, GMXR, ARD and SWN.
Frankly, even the expected inflation data is too high in my opinion. Nonetheless, the market God's smile upon "as expected" with regards to inflation and jolt the market higher.
So, my convictions tell me the market will continue to trade up, unless "peace in the Middle East" unravels.
Today's market is led by gains in Metals, Homebuilders, Semiconductors and Networkers. In my humble opinion: a very nice combo for a sustainable, yet short term, rally. Short term meaning less than 1 month.
Regarding my shorts: I will be covering them all-- in an attempt to lever myself to this rally as aggressivley as I can.
The following metal stocks are showing some mojo:
ERS +5.4%
RTI +3.9%
TIE +3.5%
BHP +3.1%
RTP +3.0%
X +2.7%
NUE +2.6%
NOTE: The energy sector is rebounding nicely today, despite oil going lower. Furthermore, natural gas stocks are in the leadership position, with gains in: NGAS, BMD, GMXR, ARD and SWN.
