Commodities excluding oil

Discussion in 'Metal Futures' started by kyc30090, Aug 7, 2008.

  1. kyc30090

    kyc30090

    I want to hear what you guys think about the once-high-fliers, steel makers, iron ore / other metal miners, coal companies.

    Both steel and coal companies have huge earning quarter. Yet, the down trend is quite clear. They are quite tough to trade. Coal, lumped with oil as energy has a high correlation with the market but of course as oil goes up, market goes down. With the downtrend of coil and market, coal seems really hard to trade. Miners for coal are even tougher.

    Steel is tough too. US dollar strengthened will lower the commodities price. Bad economy may drive dollar lower but then people think global growth slows and thus lower steel demand.

    But then, they are the guys who make huge bucks and continue will be.
     
  2. bignatty

    bignatty

    My guess is hedge funds in crowded trades that need to liquidate to bring down leverage. Notice also the short squeeze in financials as of late too.