Two Ways: AK Steel Ups the Ante
Strengthen your portfolio in good times and bad.
AK Steel (AKS) announced today a price increase on its carbon steel products. In a press release, the West Chester, Ohio based steelmaker said effective July 1, 2009, carbon steel products will increase by $20 per ton.
A report by energy information provider Platts said most US steel buyers weren't surprised by the announcement as rumors of the price hike had been circulating for days. Meanwhile other steelmakers like Nucor (NUE), US Steel (X) and ArcelorMittal (MT) haven't said that they'd be making price changes as well.
From the Bull Pen: Looking at the daily chart for AK Steel, we see overhead resistance at $15.50. One approach for the passive investor is to start an initial position here with a sell stop below recent lows (near the $12-13 range depending on your risk profile). Posco (PKX) could be a better upside opportunity. A sell stop can be set near $83-84.
From the Bear Cave: For a downside play, bears can look elsewhere such as big pharma. Merck (MRK) may be an opportunity at $28 resistance which is also its 200 DMA. A buy stop can be set above that level.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.64%, India 0.23%, Shanghai 0.11%, Nikkei 0.27%, and Taiwan -0.07%.
Glancing towards Europe, we see the CAC -0.06%, DAX -0.02%, FTSE -0.78%
As of 8:00 AM EST, S&P Futures are trading +2 to 941.00, and Nasdaq futures are +4 to 1474.12.
A Look at Commodities
Over in commodities, crude oil is trading -0.36 to 68.22 while gold is -2.30 at 977.70 this morning. Silver is -0.105 to 15.63 and copper -1.30 to 230.60.
The dollar index is -0.5400 to 78.6200.
On the Radar
09:00 Pending Home Sales 3.2% Cons.
Click here for the full trading radar.
Welcome back, Minyans. Good luck today!
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