I've got the $80.00 July calls on NUE and I'm surprised it has not moved as much as the other steel stocks as there the largest raw steel supplier out there. I'm in the steel business as well and we have seen the cost per ton rise steadly since January which we have been told by the mills is due to the increasing price of scrap and of course fuel surcharges.
Horrible recession: Why are steel stocks breaking out?
- Thread starter makloda
- Start date
I keep reading the world is seeing the world economic fallout since 1933 and we're all going to head to the soup kitchen soon. Yet steel stocks the mother of all cyclical industries are trucking higher to new highs:
X Up $7.77 +5.30%
STLD Up $2.55 +7.28%
GNA Up $0.37 +2.41%
AKS Up $3.37 +5.09%
NUE Up $3.06 +4.45%
The equity traders must be nuts I guess? I mean there's no way the economic bears are overshooting with their hypothesis
X Up $7.77 +5.30%
STLD Up $2.55 +7.28%
GNA Up $0.37 +2.41%
AKS Up $3.37 +5.09%
NUE Up $3.06 +4.45%
The equity traders must be nuts I guess? I mean there's no way the economic bears are overshooting with their hypothesis
Quote from makloda:
I keep reading the world is seeing the world economic fallout since 1933 and we're all going to head to the soup kitchen soon. Yet steel stocks the mother of all cyclical industries are trucking higher to new highs:
X Up $7.77 +5.30%
STLD Up $2.55 +7.28%
GNA Up $0.37 +2.41%
AKS Up $3.37 +5.09%
NUE Up $3.06 +4.45%
The equity traders must be nuts I guess? I mean there's no way the economic bears are overshooting with their hypothesis
world economic fallout? post a link.
you are mixing up the world with america's housing crash. obviously 2 things that are easy to mix up
the weak dollar kills imports of steel so all demand must be met by us companies.Quote from makloda:
I keep reading the world is seeing the world economic fallout since 1933 and we're all going to head to the soup kitchen soon. Yet steel stocks the mother of all cyclical industries are trucking higher to new highs:
X Up $7.77 +5.30%
STLD Up $2.55 +7.28%
GNA Up $0.37 +2.41%
AKS Up $3.37 +5.09%
NUE Up $3.06 +4.45%
The equity traders must be nuts I guess? I mean there's no way the economic bears are overshooting with their hypothesis
We're in a global economic boom of epic proportions. Steel demand isn't showing signs of slowing. And the bull market which began on October of 2002 isn't over. There is no recession except an imaginary, leftist, pro-Obama, media generated one.
Quote from makloda:
I keep reading the world is seeing the world economic fallout since 1933 and we're all going to head to the soup kitchen soon. Yet steel stocks the mother of all cyclical industries are trucking higher to new highs:
X Up $7.77 +5.30%
STLD Up $2.55 +7.28%
GNA Up $0.37 +2.41%
AKS Up $3.37 +5.09%
NUE Up $3.06 +4.45%
The equity traders must be nuts I guess? I mean there's no way the economic bears are overshooting with their hypothesis
I'm surprised that some of the ET "experts" on the Economy like Aaron Copland and his "buddy" S2007S have yet to weigh in on this amazing performance by U.S. steel companies!
Quote from makloda:
Somehow these charts don't make much sense in a 'rapid global economic implosion' and 'worst depression since 1933' scenario now do they. Does the equity market have got it wrong again as the bond markets are telling a very different story
Not sure what you're getting at here: steel/commodities/materials - many things that are part of "global infrastructure" - are doing very good long-wise. Demand is prety strong: global demand is up 5-6% and the same is predicted for this year, although it's a little weak in the US itself:
http://www.reuters.com/article/GlobalMiningandSteel08/idUSL1041655920080310
But more importantly, you have supply issues:
http://www.thestreet.com/_yahoo/fun...ml?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
"With U.S. steel demand approximately 30% ahead of its supply and the dollar weakening, the conditions have been ideal for many of these steel names.
"With imports down and distributors having cut inventories last year, supply is relatively tight right now," says Leo Larkin, an equity analyst at Standard & Poor's. "
Are padlocks made from steel? That could be part of the answer. Banks having to buy more locks to keep the folks out that just got foreclosed on. 
oh and stucktrad3r, are you racist? You sure seem to hate Obama...What about Condi? Do you like her?
oh and stucktrad3r, are you racist? You sure seem to hate Obama...What about Condi? Do you like her?Quote from frank grimes:
Are padlocks made from steel? That could be part of the answer. Banks having to buy more locks to keep the folks out that just got foreclosed on.
Obama is a raving liberal even more so than Clinton and possibly a Marxist. But if either of them is elected president the market will probably tank.