By Gareth Soloway on July 9th, 2010 1:11pm Eastern Time
A massive rally has taken place this week. Indexes are up five percent on a four day trading week. The leaders without a doubt are commodity stocks which have soared. As the fear of a massive double dip global recession have diminished, perceived demand for commodities has inched higher again. The big winners this week and today are Chevron Corporation (NYSE:CVX), AK Steel Holding Corporation (NYSE:AKS), United States Steel Corporation (NYSE:X) and Southern Copper Corporation (USA) (NYSE:SCCO).
Just last Friday, Chevron closed at $67.31. Today, it hit a high of $71.69. Commodities are back in vogue and this company is one of the biggest, reaping the rewards. This past Tuesday, the first day back after the holiday July 4th weekend, AK Steel closed at $11.52. Today it hit a high of $13.25. This is almost a 15% gain. U.S Steel is much the same and Southern Copper is just as astounding. As of last Friday, Southern Copper closed at $26.44. The stock has soared since then hitting a high of $30.43 today. A big gain of 15% as well.
As the commodity plays have jumped, so have the markets. These stocks may need to pause early next week and even pull back slightly. Should this consolidation take place, it is possible to see them continue higher. To get entries on swing trades, market guidance, analysis and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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