Karpel’s Corner: Metals and Miners Fail First Test

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The Metals market ($XME) has failed the first test of support–at least initially. We saw a red flag last week when Gold ($GLD) broke to the downside. The miners then followed, with $XME testing and breaking support at the $43 level. 

Names like $AKS, $STLD, and $NEM are all under great pressure. I will be watching the Steel stocks ($SLX) closely. Names like $VALE and $RIO, have been under pressure but US and Chinese steel stocks are holding up. If there’s any selling pressure coming into play, this could quickly put some infrastructure plays in question.

We talked a lot about the Retail sector ($XRT) this week on Tradespoon Live TV. The ETF finished the day with a lackluster close. As my guest on the show Joe Cusick mentioned, any pullback in this sector, while it appears negative on the surface, is okay in a strong sector with a long-term uptrend.

Tradespoon subscribers can use the Tradespoon Bulls section to watch some names and monitor for pullback. Even if you are not a subscriber yet, make sure you check out the webinars this week.  We have some really good ones!

See you next time at the Corner!