Aluminum Alert: China Stalls, Market Falls
As recently noted in the case of the steel industry, the market for aluminum is not looking as though it will be near the front of the pack as the commodity sector eventually mounts its inevitable recovery. In fact, the near-term fundamentals for aluminum have carved an abrupt about-face from bullish to very bearish in just a few months' time. Keep in mind, however, the extend to which this reversal of furtune has already been priced into the stocks, and you may yet perceive some value / limited downside risk in the sector. Still... I would recommend some serious caution in aluminum over the coming months, while keeping a close eye on these bellwhether industries whether you own them or not.
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