The Metals Have Gone to Zero

October 9, 2008 – 11:06 am

That’s right. The world no longer needs metal. We’re going to start making cars out of lightweight plastic. You know, to increase fuel efficiency and all that. Owning anything made of metal, in the future, will be outlawed.

Yesterday’s action took the bullish percent index on the non-ferrous metals sector to ZERO. No stocks are on buy signals. None. Nada.

It’s bad enough that the NYSE Bullish Percent Index hit 6% bullish yesterday, but ZERO PERCENT bullish for the non-ferrous metals sector? You must be joking.

This is an area that Costanza traders might want to mine (pun intended).

Could the metals stay this depressed for a while? Sure. But, there’s something called the law of averages that tells me that the current situation is an egregious anomaly, worthy of contrarian thinking.

Stocks to watch: Alcoa Inc. [[AA]] , BHP Billiton Limited (ADR) [[BHP]] , Century Aluminum Company [[CENX]] , Cameco Corporation (USA) [[CCJ]] , Freeport-McMoRan Copper & Gold Inc. [[FCX]] , Southern Copper Corporation (USA) [[PCU]] , [[RIO]] , Rio Tinto plc (ADR) [[RTP]] .

Disclaimer: Constanza traders only.

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14 Responses to “The Metals Have Gone to Zero”

IShortYouNot Says:

US Steel

http://www.cafepress.com/IShortYouNot
October 9th, 2008 at 11:11 am
sir douchebag Says:

All we need now are toilet paper and guns. And there’s plenty of guns — no need to make more.
October 9th, 2008 at 11:12 am
IShortYouNot Says:

US Steel trading at around 2-4x FP/E
October 9th, 2008 at 11:14 am
alphadawgg Says:

ISYN–
LOL. Those will make nice parting gifts for investors.

“Thanks for playing”.
October 9th, 2008 at 11:17 am
Topper Harley Says:

Watch AKS ACH too. Cheap as shit.
October 9th, 2008 at 11:18 am
IShortYouNot Says:

alpha-

Well, I’m an execution trader so job security is less than 100%. Gotta pay those bills…. SUPPORT THE TRADERS!!!!
October 9th, 2008 at 11:23 am
alphadawgg Says:

ISYN–Offering the thong is a nice touch.

Harley Rider– I’m on them. Thanks.
October 9th, 2008 at 11:28 am
Juice Says:

I’ve taken some CENX for a flipperoo, much to Sahibs chagrin and against his sage advice

and JJ’s retirement trailer park tickets to ride - SWC/PAL

5-10% stops on all 3
October 9th, 2008 at 11:45 am
Glen Quagmire Says:

New PowerShares commodity-linked ETFs:

PowerShares Global Agriculture Portfolio (Nasdaq: PAGG - News)
PowerShares Global Coal Portfolio (Nasdaq: PKOL - News)
PowerShares Global Steel Portfolio (Nasdaq: PSTL - News)
PowerShares Global Gold and Precious Metals Portfolio (Nasdaq: PSAU - News)
October 9th, 2008 at 11:58 am
The Fly Says:

BOM gets you short Alun, copper and zinc, 2x.
October 9th, 2008 at 12:18 pm
boca Says:

SLX and GTI
crazy cheap
October 9th, 2008 at 1:12 pm
anjing bau Says:

RIG ready?
October 9th, 2008 at 1:52 pm
alphadawgg Says:

Careful on RIG and the oil service stocks. I’m hearing people talking about some projects getting cancelled by the majors.
October 9th, 2008 at 2:13 pm
Ozark Hillbilly Says:

Part of the crashcading effect. The negative feedback loop, IMHO, is just coming online this week.
October 9th, 2008 at 2:51 pm