Are steel stocks about to break out?

Discussion in 'Men's Economics' started by Aces, Apr 22, 2017.

  1. Aces

    Aces Member

    they are at an inflection point based on Trumps tough talk on foreign steel being dumped the market. I usually play NUE, X, IIIN, and FLXS. Im waiting to see which direction they want to go.
    Ultimatepip likes this.
  2. Ultimatepip

    Ultimatepip Member

    I wish I knew brother! I've just started messing around with the stock market, it's kinda interesting with all the different variables involved.
    MindlessWork likes this.
  3. Rockclimber

    Rockclimber Member

    I've owned steel for my clients since election day. Mostly X. It's been a great ride even though there is no p/e yet
  4. Aces

    Aces Member

    My post on saturday said steel stocks " were at an inflection point" and was waiting to see the direction . Well, this week we saw it. Down ......
    Especially X. Thats why i look at charts before i buy anything. Gotta wait and see.
  5. master.on

    master.on Member

    The trend is your friend
    But while Trump policies/proposals are bullish for stocks (less regulation, lower/simpler taxes, buy/hire American) the stock market had rallied for a long time, perhaps too long because of Obama's money printing.

    That being said I wonder if steel stocks would still rally despite potentially plateauing stock market indexes.

    If you're really confident steel stocks will outperform, you can buy steel stocks, short index ETFs (say SPY, DIA)
    if I'm not mistaken the strategy is called 'Pair-Trading' and it makes money as long steel does better (or less bad) than the shorted index.
    In case of a bear market (stocks plunge), the strategy still makes money as long as steel stock prices falls less than the shorted index (even if both prices plumet).
  6. Aces

    Aces Member

    They did break out.
    If Trumps infrastructure plan goes through, Steel will really take off. Of course you buy BEFORE the plan gets signed.
    X, NUE, STLD.
  7. MindlessWork

    MindlessWork Member Supporter

    Coal stocks are also a mixed bag even though Trump is big on coal.
  8. D-max

    D-max Member

    Coal is stagnant and will never hit the volumes of a few years ago ever again. No new plants will ever be built, and most are running natural gas with coal as a backup because natural gas is so plentiful and cheaper.