My alert on a major overbought scenario on United States Steel (NYSE:X), Alcoa (NYSE:AA), Century Aluminum Company (NASDAQ:CENX), Titanium Metals Corp. (NYSE:TIE) was issued yesterday. At that time, U.S Steel was trading at $57.48. The title of the article which is shown below in its entirety was called "Metal Stocks Poised For 10% Or More Correction In Early 2010 After Massive Runup". U.S. Steel has already dropped in a major way, currently trading at $54.70. That is 5% correction in just 24 hours.
The other stocks I mentioned, have also already started to drop. This is just the start of the 10% or more correction I was talking about yesterday when I issued my red alert sell signal on all these metal stocks. The valuations were far too high short term, the technical levels and analysis screamed to me that a correction was immanent. I issued my analysis, my alert and was locked and loaded.
I have a red alert sell signal on each of these stocks until they reach a minimum of a 10% correction. I believe U.S Steel, Century Aluminum Company and Titanium Metals Corp. may correct as much as 15 – 20% before all is said and done. Alcoa Inc may only correct 10% or so. Enjoy the ride and stay tuned to future analysis and projections. Live, Learn, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
**** Previous Article Yesterday Was Posted At 11:56am ET (12.28.09) ****
Metal Stocks Poised For 10% Or More Correction In Early 2010 After Massive Runup
It has been a move for the history books. Stocks like United States Steel (NYSE: X), Alcoa Inc (NYSE: AA), Titanium Metals Corp (NYSE: TIE) and Century Aluminum Company (NasdaqGS: CENX) soaring into the end of 2009 like a rocket ship headed for the stars. Just in the last month or two, these metal stocks have ripped higher by 25 – 50%. It now looks like they are coming into massive resistance levels and I am issuing a red alert sell signal.
Based on valuations, growth projections and technical extensions above key levels, these stocks have been added to my red alert drop list. I expect them to see 10% or more corrections in the near term of January. Already today, United States Steel has started to form a daily bearish candle along with Alcoa Inc. U.S Steel has rocketed higher since the hit of the 200ma on November 3rd, 2009 at $34.00 to a high today of $58.19. It is far above the 20ma and after a four day surge, multiple indicators are showing a January or sooner correction coming. Look for price to fall back to the 20ma.
The same can be applied to all the other stocks listed. The extension moves they have had were due partly to short squeezes and partly to momentum runners as hedge fund and money managers looked to show these in their portfolios for year end statements. Come January or sooner, I am issuing a red alert sell signal on all these stocks. Be smart, learn the technicals, understand the fundamentals and go the opposite of the crowd. Learn, Live, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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