Comments on market folly: Liking Steel Here, Especially Siderurgica (SID)

what is interesting to me is the divergence betwee...

2008-06-19T16:46:00.000-05:00

what is interesting to me is the divergence between GGB and SID

From all I read GGB is the more integrated so could be a benefit as coking coal skyrockets the next year. But I am going off memory and could be mixing the two.

Usually these 2 trade together - GGB looks like it has no care in the world why SID drops hard. I find it curious.

yup exactly, markets are wonderful. what i was se...

2008-06-19T15:55:00.000-05:00

yup exactly, markets are wonderful. what i was seeing on MTL was a possible double top and then just overall indecision since its more up and down lately, choppy. but you're right in that its held its support so far.

SID has been less choppy, but is teetering on support rather than decidedly bouncing. both a quandary really.

and yea i'm worried about the china ordeal as well. these things can really light a fire once a catalyst comes and that's why i only started a small initial size here because things are looking somewhat shaky

This is what makes a marketI like MTL chart better...

2008-06-19T15:11:00.000-05:00

This is what makes a market

I like MTL chart better than SID

MTL looks like it bounced off 50 day
SID still up in the air

but in either we'd need to monitor because as you said, a pullback can always turn into a breakdown right quick.

I believe we might have the turn in commodities - China might have finally turned out the light on this round of ebulence. We'll see - I've been early by about 3 weeks :O so don't want to make any victory calls yet. Logic would dictate this is a spot for reversal but logic means nothing in market.

MTL > SID hehe

ya i'd heard about that, that's wild!

2008-06-19T12:18:00.000-05:00

ya i'd heard about that, that's wild!