Steel Stocks Look Vulnerable
The industrial metals sector continues to suffer under a bearish regime as Europe slides back into a recession and global economic concerns start to spike once again. Metal prices are under pressure as the rising dollar weighs on the commodity market and prices drift lower.
The metals and mining sector has been a one of our favorite areas of the market to find trades on the short side, and we see another opportunity for a bearish trade in the steel names. London Metal Exchange steel prices have steadily drifted lower since their peak in 2011 and have created a bearish headwind for the group. The combination of weak steel prices, a resurgence of global economic concerns and bearish technical configurations suggests that there is an opportunity to profit with a bearish trade in the steel sector....349 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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