The markets are continuing to sell sharply after a quick bounce at the low from Thursday. The Dow Jones Industrial Average is lower by 115 points. That is the biggest drop on the Dow in weeks. Fears from Europe are fueling the drop as the U.S. Dollar has spiked higher. Many leading stocks are pulling back including the commodity plays. These commodity plays have soared recently as a global recovery was thought to be well underway. This fear spike in Europe is causing those stocks to drop.
Southern Copper Corporation (USA) (NYSE:SCCO) has been a major runner of late, spiking from $27.35 on August 25th, 2010 to $36.00 on Friday. This massive up move is a 31.6% move in just over a month. The stock ran into a perfect double top as well, trying to take it out on Friday, however it appears to have failed with the reversal engulfing candle today on the daily chart.
United States Steel Corporation (NYSE:X) and AK Steel Holding Corporation (NYSE:AKS) are both dropping over 3% today as well. This sharp sell tells us their is fear that the run up in these global expansion stocks may not have been warranted. This is the first significant sell off in the markets in over a month. The bigger question is whether or not it will hold and will it see follow through. To gain this insight, including swing trade calls, guidance and education, join the Research Center at InTheMoneyStocks.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
