Everything that can go wrong has gone wrong in 2022. It does not matter how you visualize or trade, the likelihood of you going wrong has been extremely high. And so in this kind of market, if one sector stands out then it does need attention. I am glad I covered it. Also, there is another sector that’s showing signs of promise and one can only hope that this sector too performs.
The Sector that has worked this year: Shipping
The three stocks I recommended: 1. ZIM; 2. DAC and 3. SBLK
SBLK stock broke out above 25-26 levels and it has seen a vertical surge to 31.5
This is a theme to ride and one more stock seems to be showing signs of promise i.e. Dianne Shipping DSX
The theme that has joined the party – Steel
The Steelmakers had an incredible 2021 and most of the companies posted excellent earnings but somehow stocks never made a decisive move but now things seem to be changing. I love it when leading stocks of the sector make a new all-time high. Nucor Steel has done just that.
Even Steel Dynamics and US Steel also making a decisive bullish move. Timken Steel TMST yesterday came out with brilliant earnings and the stock is surging.
What am I recommending?
It might not be a bad idea to have exposure in Steel stocks, especially NUE.
There is also a Steel Sector ETF SLX. Keep an eye for potential turnaround above 200 dma
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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