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Is The Base Metal Bounce A Real Bottom?
One of the weakest sectors in the stock market has been the base and industrial metal stocks. This important industry group has been under selling pressure since January 2011. In the past, many seasoned traders and investors have viewed the base metal stocks as a good economic indicator. When the base metal stock trade higher it usually signals inflation and economic expansion. The opposite is true when the base and industrial metal stocks decline, it is a sign of deflation and economic contraction. The Chinese economy will also affect the base and industrial metal stocks, so it will be important for investors to follow the Shanghai Index very closely.
One of the leading base and industrial metal stocks is BHP Billiton Ltd (NYSE:BHP). Today, BHP stock is trading higher by 0.26 cents to $64.45 a share. The stock is very oversold on a daily chart as it dropped sharply from it's February 18, 2013 high of $80.54 a share. Traders can watch for some daily chart support around the $60.00, and $55.00 level should the stock decline further.
Some leading base and industrial metal stocks that are catching a bid higher today include Teck Resources Ltd (USA) (NYSE:TCK), Vale SA (ADR) (NYSE:VALE), Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), and Cliffs Natural Resources Inc (NYSE:CLF). The entire industry group will usually trade inversely to the U.S. Dollar Index. A strong U.S. Dollar will usually drive down the price of base metals. Any bounce in the base and industrial metal stocks should be viewed as short term and nothing more, the trend remains down in these stocks at this time.
One of the weakest sectors in the stock market has been the base and industrial metal stocks. This important industry group has been under selling pressure since January 2011. In the past, many seasoned traders and investors have viewed the base metal stocks as a good economic indicator. When the base metal stock trade higher it usually signals inflation and economic expansion. The opposite is true when the base and industrial metal stocks decline, it is a sign of deflation and economic contraction. The Chinese economy will also affect the base and industrial metal stocks, so it will be important for investors to follow the Shanghai Index very closely.
One of the leading base and industrial metal stocks is BHP Billiton Ltd (NYSE:BHP). Today, BHP stock is trading higher by 0.26 cents to $64.45 a share. The stock is very oversold on a daily chart as it dropped sharply from it's February 18, 2013 high of $80.54 a share. Traders can watch for some daily chart support around the $60.00, and $55.00 level should the stock decline further.
Some leading base and industrial metal stocks that are catching a bid higher today include Teck Resources Ltd (USA) (NYSE:TCK), Vale SA (ADR) (NYSE:VALE), Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), and Cliffs Natural Resources Inc (NYSE:CLF). The entire industry group will usually trade inversely to the U.S. Dollar Index. A strong U.S. Dollar will usually drive down the price of base metals. Any bounce in the base and industrial metal stocks should be viewed as short term and nothing more, the trend remains down in these stocks at this time.
Internet Security Stocks Continue To Show Strength
Many of the internet security stocks are still holding up well on the charts. This important and leading industry group has been in demand as cyber attacks and theft have continually increased each and every year. Mobile crimes are also on the rise and this industry group is likely to see more demand for it's security products in the future.
One of the strongest internet security stocks that continue to form bullish consolidation on the charts is Symantec Corp (NASDAQ:SYMC). Today, SYMC is trading lower by 0.06 cents to $24.38 a share. The stock will have a decent amount of intra-day support around the $24.20 level. Should the daily chart of SYMC continue to trade sideways for couple of more weeks this stock will be a potential breakout candidate.
Some other leading internet security stocks that are also holding up well on the daily charts at this time include Verisign Inc (NASDAQ:VRSN), Sourcefire Inc (NASDAQ:FIRE), and Qihoo 360 Technology Co. Ltd (NASDAQ:QIHU). All of these stocks mentioned may not trade the same way so traders will have to view each chart individually.
Many of the internet security stocks are still holding up well on the charts. This important and leading industry group has been in demand as cyber attacks and theft have continually increased each and every year. Mobile crimes are also on the rise and this industry group is likely to see more demand for it's security products in the future.
One of the strongest internet security stocks that continue to form bullish consolidation on the charts is Symantec Corp (NASDAQ:SYMC). Today, SYMC is trading lower by 0.06 cents to $24.38 a share. The stock will have a decent amount of intra-day support around the $24.20 level. Should the daily chart of SYMC continue to trade sideways for couple of more weeks this stock will be a potential breakout candidate.
Some other leading internet security stocks that are also holding up well on the daily charts at this time include Verisign Inc (NASDAQ:VRSN), Sourcefire Inc (NASDAQ:FIRE), and Qihoo 360 Technology Co. Ltd (NASDAQ:QIHU). All of these stocks mentioned may not trade the same way so traders will have to view each chart individually.
Soda Wars
Recently, leading soda and non-alcoholic beverage stocks have been some of the best market performers. One of the leading soda and beverage stocks is PepsiCo Inc (NYSE:PEP). This stock is now approaching its 2007 high, which was $79.79 a share. Last week, PEP stock closed at a new 52 week high of $78.64 a share. Anytime a leading stock trades into an important old high, that old price will become near term resistance. Should PEP trade above that level, the next near term chart resistance would be around the $81.00 - $82.00 level; watch for PEP to see a pullback from this area. Once this price range is reached, traders should then watch for a consolidation pattern to form, this will indicate that the stock is going to move higher in the future. PEP stock is one of the strongest stocks in its industry group.
Some of the leading competitors to Pepsi Co Inc include The Coca-Cola Company (NYSE:KO), Dr Pepper Snapple Group Inc (NYSE:DPS), Cott Corporation (USA) (NYSE:COT), and Monster Beverage Corp (NASDAQ:MNST). Most of the leading beverage stocks are looking close to being overbought in the near term. This tells us that the upside in this sector should be limited. PEP stock is still the strongest stock in the industry group at this time, but don't expect much more upside in the near term. Simply read the charts correctly and the direction of the next move will reveal itself.
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Stock Market Volatility: An Inside View From #ProprietaryTraders... http://t.co/YYm1ysgnK9
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The #FastMoney guys yesterday were bullish.Today saying "I knew this market was overbought, due for a drop" lol.Too funny.Good comic relief
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Quote From A Member: "Gareth great read on markets. Very impressive! Short QQQs, JPM, TGT and still have some DE in the tank. thx! :)"
