Two Ways: ArcelorMittal Drawn To Emerging Markets
Strengthen your portfolio in good times and bad.
ArcelorMittal (MT) CEO Lakshmi Mittal told steel executives in New York yesterday that his company is shifting its strategy to focus more on lower-cost developing countries, rather than the developed economies of North America and Europe.
According to The Wall Street Journal, Mittal's reasoning is an acknowledgment that the long-term growth prospects are not in these regions, but rather in China and other emerging markets. ArcelorMittal's goal is to increase its production in the emerging economies to 50%. Currently, 40% of its total production derives from the emerging market sources.
From the Bull Pen: ArcelorMittal is one of the best steel companies around. A look at the daily chart shows strong support near $30, which also coincides with its 50 day moving average. Those bullish can set a near term sell stop below that level.
From the Bear Cave: For a bearish global play, keep the Japanese consumer electronics company Sony Corp (SNE) on the radar. See the double top at $28. Consider downside entry near $26.50.
Quick Check Around the World
Asian trading closed with the Hang Seng 2.02%, India 0.69%, Shanghai 1.02%, Nikkei 0.43%, and Taiwan 2.95%.
Glancing towards Europe, we see the FTSE 0.20%, CAC 0.64%, DAX 0.79%
As of 8:10 AM EST, S&P Futures are trading +5.0 to 895.00 and Nasdaq futures are +5 to 1429.25.
A Look at Commodities
Over in commodities, crude oil is trading -0.71 to 68.53 while gold is +2.50 at 926.80 this morning. Silver is +0.150 to 13.86 and copper +1.85 to 221.70.
The dollar index is +0.210 to 80.3850.
On the Radar
08:30 Durable Orders -0.9% cons
08:30 Durable Orders ex Transportation -0.5% cons
10:00 New Home Sales 360k cons
10:30 Crude Inventories
02:15 FOMC Rate Decision
Click here to see the full trading radar.
Shout out to my new friends at JRCO! Happy hump day and good luck!
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