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VIDEOTwo Ways To Play: Mission Im-Posco-ible
Strengthen your portfolio in good times and bad.
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Posco Warns On Earnings
Posco (PKX) is warning that January earnings will very likely be the worst in the company’s 40-year history. According to Bloomberg, Asia’s third-largest steelmaker is lowering output for the first time, following similar moves by rivals ArcelorMittal (MT) and Japan’s Nippon Steel Corp. The company is cutting annual costs by as much as $735 million through a number of initiatives, including the use of cheaper materials.
It's starting to pay off, Posco said today, and despite the harsh earnings decline, Posco expects to be profitable this month. 
From the Bull Pen: For a trade, bulls can look to US steelmaker Nucor (NUE) which is approaching its 20 DMA ($38.60). A sell stop can be set below that level. 
From the Bear Cave: For a trade, consider the Ultrashort basic materials ETF (SMN). One can set a tight sell stop near $37-$38.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.17%, Nikkei -4.79%, Sensex -0.42%, Taiwan 1.76% and Shanghai -1.95%.
Glancing towards Europe, we see the CAC -2.26%, DAX -2.10%, FTSE -1.78%
As of 8:10 a.m. EST, S&P futures are trading -7 to 861.00, and Nasdaq futures are -10 to 1196.00.
A Look At Commodities
Crude oil is trading -0.97 to 36.62. Gold is -4.60 to 816.40. Silver is -0.18 to 10.565, and copper is -5.60 to 143.25.
The dollar index is +0.896 to 84.4950.
On the Radar
Economics
08:30 Trade Balance -$52.0B
10:00 IBD/TIPP Economic Optimism
04:00 Monthly Budget Statement $-42.5B
Click here for the full trading radar.
Good luck!
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