Foreign Versus Domestic Debate:
In the steel space, there has been some disparity. More specifically we have seen strength in the international stocks. Names like TS which looks to be carving out a handle on its cup base here looks attractive. VALE is sneaking up on its 200 day SMA just above, and a pierce to the upside would be it’s first in 5 months. Meanwhile, some of the big names here in the states are struggling. CLF comes to mind and it is lower by 15% this week so far, not a typo after the prior week slipped 5%. X has receded even more this week to the tune of 16%, and both are now a rapid 30% off their highs. X for the last 10 months has been trading in a range between the round 20-30 numbers. Below is the ratio chart contrasting the names of MT and NUE. On a YTD basis, there are some glaring differences with MT higher by 8% and NUE lower by 12%. NUE CLOSED below its 200 day SMA and could bounce off the very round par number here, but to me, I will not touch it. Hearing the incessant chatter of the potential EEM strength makes me nervous, but PRICE action is all that matters.