Possible Long Idea In The Steel Sector
- Posted by ZorTrades
- on September 26th, 2012
The Steel Sector (SLX) is down 8 days in a row and oversold from a numbers perspective; only 1 stock out the 27 stocks within the ETF is above its 10 day moving average. ETF’S tend to be mean reverting instruments so a short term rally here will not be out the question. Mechel OAO (MTL) is a stock within the sector that looks to be at place where a bounce should occur. The stock formed a 4 month base in which it broke out of in September around the $7 dollar level, it ran to 8 and now has retraced for 8 straight days back to the base breakout level.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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