Thursday, December 21, 2006

 

Sector Spotlight: Metals

With the holiday's around the corner, it is likely we will not see any big moves in the market-- for the remainder of the year. Most managers are content with their performance numbers and will probably play defense until next year.

We are seeing very negative action in commodity related stocks, specifically the Metals and Oil. I attribute that to year end profit taking/protecting returns. The Metals were the leading sector in 2006-- with monster gains in nearly every single stock in the group. At these levels, I do not like the sector and would avoid it.

Conversely, I feel the Oils are on sale now. Stocks like VLO, UPL and PTEN should be accumulated on this dip.

Aside from the commodities, the market is trading sideways-- as most money managers packed up their balls and are now investing like Saul Rosenberg from the Jerky Boys. Don't expect any big moves in the big names. However, low float stocks, like MAMA, may continue to be manipulated until year end. Be careful not to get suckered into any small cap momentum plays.

Finally, as per request, I will list my positions tonight and maybe throw a few predictions on the barbie.

NOTE: If you like the Jerky Boys, listen to this or this. Or, listen to Frank Rizzo offer his volunteer work. Funny stuff.

The following Metals stocks have no mojo:

FCX -4.9%
RTI -4.1%
PCU -3.9%
TIE -3.3%
ZEUS -2.8%

Comments:
I know you are extremely busy but any chance of you putting out your best performers for Jan stock screen? I was goofing around with the last one you put out and generally liked the results.

Keep up the great posts and have a good holiday season.

PX is getting shot.

dnf
 
anybody hearing anything on mvis? up nicely on solid volume so far.
 
My final screen will be issued by year end.

MVIS on fire. I believe product update will come soon.
 
Buy indicator for MVIS.

http://ratings.thestreet.com/tools/basic/ratings.html?rqp=1&s=MVIS
 
I like HP as a driller play.

Their company is equipped with the most efficient oil rigs, and when oil prices rebound, HP will gross more contracts because their productivity surprasses the whole drilling industry.

I'm long on HP.
 
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