By InTheMoneyStocks.com on February 1st, 2010 1:55pm Eastern Time
Commodity stocks have been in a downward spiral for the last two weeks. The dollar has rallied higher dropping commodities like gold, oil, copper and steel. With this massive drop comes bargains. The key is to look at the charts and find the best plays are ready for a bounce. Anything that is influenced by the dollar is a possible play. Get your notebooks ready, here they come.
10. Steel Dynamics, Inc. (NASDAQ:STLD)
Hit and crossed the 200 moving average on the daily chart on Friday, no confirmation of move down below the 200MA. In addition, filled gap on daily at $15.00. Stock up a dollar off these technical levels. The stock is currently up 5.20% today.
09. Southern Copper Corporation (NYSE:PCU)
Hit and crossed the 200 moving average on the daily chart on Friday, no confirmation of move below the 200MA. 25% drop in two weeks. Extreme near term oversold technically. The stock is currently up 6.08% today.
08. Potash Corp. Saskatchewan (NYSE:POT)
Hit and crossed the 200 moving average on the daily chart on Friday. Broke the master even number of $100 plus no confirmation of a break of the 200ma. Down from $126+ in two weeks. Extreme oversold signal. The stock is currently up 3.87% today.
07. The Mosaic Company (NYSE:MOS)
Sharp sell off like Potash Corp. Major support range on daily chart $53.00 - $54.00. Double bottom broken per Friday close but not confirmed. Signals whip of amateurs out of the swing trade. The stock is currently up 4.25% today.
06. United States Steel Corporation (NYSE:X)
Two week collapse from $65 to $44 per share signals major oversold. Matched with that there is a pivot support range on the daily chart from early December telling traders that this area is a great level for a bounce. The stock is currently up 5.67% today.
05. Newmont Mining Corporation (NYSE:NEM)
A major value play down from December highs of $56.45, this miner is was a sure bet as of the close on Friday at a price of $43.48. A technical support range of $44 - $42 stood out as the level to watch. The stock is currently up 5.55% today.
04. Yamana Gold Inc. (NYSE:AUY)
This gold stock has fallen almost every day for the past two weeks. That signals a major oversold condition and the high probability of a bounce. In addition to being down from the $13 range to $10 in the last two weeks, the stock nailed a major double/triple bottom at $10.00 - $10.15.
03. United States Oil Fund LP (ETF) (NYSE:USO)
Oil has been crushed over the past two weeks on the back of a stronger dollar. As the dollar comes into major resistance, the likelihood of a pullback in the dollar increases. If the dollar drops, oil will pop. In addition to the dollar being into major resistance, oil has come into major double bottom and 200 moving average support. The area of $35.00 - $35.25 was the spot for this big bouncer today. The USO is trading higher by 2.13%.
02. Claymore/MAC Global Solar Index (ETF) (NYSE:TAN)
This solar ETF has dropped since its peak of $11.67 in early January to a low on Friday of $8.67. The solar stocks have been pounded along with commodities. At this point, a drop of 26% is far too much in far too short a time. In addition, the TAN has come into a major support level at $8.75 - $9.00. This should spell continued success in the short term for other solar stocks like First Solar, Inc. (NASDAQ:FSLR) and Canadian Solar Inc. (NASDAQ:CSIQ) among others. The TAN is higher by 2.06%.
01. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)
This stock is the best of the group it appears. The technical chart is the prettiest while the price and fundamentals are super attractive. The stock fell from a 52 week high on January 11th, 2010 at $90.55 to a low on Friday at $66.20. In addition, the chart on the daily kissed the 200 moving average at the lows on Friday setting it up for a move higher today. Sure enough, that move has come. FCX is higher today by 5.75%.
Note: This top 10 list is expected to have further upside in the near term. All plays are short term swings and will most likely be off of the top 10 list by Friday.
Special Note: Every play on this list was given out to members of the Research Center and the Intra Day Stock Chat either late last week or over the weekend.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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