Commodity stocks have been extremely weak of late and one of the major causes of the weakness in the markets. Pessimism on the global economy has fueled fear of a major drop in demand for oil, copper, steel and others. Stocks like Exxon Mobil Corporation (NYSE:XOM), United States Steel Corporation (NYSE:X) and Southern Copper Corporation (USA) (NYSE:SCCO) have all dropped recently but today are rebounding sharply. Note the chart of XOM below.
The markets may hold steady through next week as the markets will be on pause for the huge Unemployment and Non Farm Payrolls report next Friday. In addition, traders will be jetting early each day if not for the whole week ahead of the Labor Day holiday weekend. Should the markets remain in a light volume float next week, these stocks should continue to do well.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
