Metals Not Confirming Market Strength
The metal stocks have stalled and fallen sharply over the last few weeks, not confirming the market strength. This has to be a warning of possible economic weakness in the coming months. Look at the iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) . This topped out in mid January and has since chopped sideways while the markets have gone higher. In addition, stocks like United States Steel Corporation (NYSE:X) topped out weeks ago and have been pulling back.
The markets are up on fluff and buy programs. Note the weakness in the metals as a key indicator that the economic picture is not as rosy as the markets make it seem. Be on alert and start accumulating shorts.