Buying Steel Stocks

JC Parets
February 22, 2024

The volatility in stocks continues as 2024 progresses.

Have you noticed how different this market is vs the one we were in throughout November and December?

The swings are getting wider, and they're coming in both directions.

Just yesterday, the Nasdaq hit new lows not seen since January.

Meanwhile, there isn't a single small-cap sector that is above its December highs.

There's still a lot of work that stocks need to do to dig them out of this hole.

But I will say I'm impressed with the resiliency in German and Japanese equities. This speaks a lot more to the strength in Industrials, which dominate those countries, compared to the more Tech-heavy US Stock Market.

I will also say that I'm impressed with the action in Base Metals over the past couple of weeks.

They had every chance to roll over, but they've held in just fine.

I also really like how cheap volatility is in this space.

Base Metals have been left for dead, and no one seems to care about them anymore.

Perfect.

I like the setup in Nucor. This is a $45 Billion Steel stock, by far the largest in its group.

The action in base metals lately has been impressive and perhaps speaks to more broad-based commodities strength.

And with volatility as cheap as it currently is in this stock, we can go out as far as next year and buy call options in January 2025.

Here are the details of the Options trade for $NUE

I also really like the action in Nvidia overnight, and that one could be setting up for us once again.

Remember, NVDA hit our target last week, so we couldn't be more thrilled with how it's behaved.

But I will say that I'm a bit surprised at just how quickly it's setting up again.

That's usually not a bad thing.

We'll be discussing the new NVDA trade as well as all the details from our Nucor Long on tomorrow's LIVE Conference Call for Premium Members of All Star Charts.

Keep in mind, anyone who attended our Technical Analysis Bootcamp last night will have complimentary access to tomorrow's Conference Call and any new trades we discuss.

For those wondering, the 3-Hour Technical Analysis Bootcamp was recorded and archived. You can access my LIVE Bootcamp here which automatically reserves your spot for tomorrow's Conference Call.

In last night's Bootcamp we discussed:

  • Top/Down Technical Analysis
  • Chart Construction
  • Technical Analysis 101: Supply & Demand
  • Dow Theory
  • Momentum
  • Japanese Candlesticks
  • Fibonacci
  • Cross-Asset Analysis (Intermarket)
  • Execution: Best Entries & Risk vs Reward
  • Using Technical Analysis with Options

Thanks for all the feedback on last night's event.

That was a lot of fun.

CLICK HERE to access my LIVE Bootcamp and guarantee your seat for Friday's Live Premium Conference Call.

See you in there!

JC

 

 

 

 

Filed Under