The futures are showing signs of helping the markets gap higher as commodity stocks hit extremely hard yesterday are bouncing. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) along with United States Steel Corporation (NYSE:X), AK Steel Holding Corporation (NYSE:AKS) and Southern Copper Corporation (NYSE:SCCO) all sold sharply yesterday on continued global worries of demand for building metals like steel and copper. These stocks have been hammered in the last couple months from 52 week highs. AKS Steel hit a 52 week high on January 11th, 2010 at $26.75. The stock made a new 52 week low yesterday $12.62. This is just one example of the drop many of these metal stocks have seen as Europe has crumbled and the Dollar has soared.
Pre market these metal stocks are all bouncing between one and two percent. These stocks are leading indicators and must be watched closely. Should the daily charts start to turn up, it is likely to see a bouncing in the overall market follow within a weeks time. As of now it is a waiting game. Note how these stocks turned down early in 2010 while the market was making new highs. It is likely to see the reverse prior to a market recovery. Stay tuned for further analysis, guidance, education and calls.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
