US Equities are continuing to show some bullishness despite the enormous Trade War uncertainty that's keeping investors on the edge.
On Friday, President Trump announced tariff on $34B of products imported from China. China was set to counter that with their own
tariffs on a variety of US products. In this dynamic, hot and uncertain environment, US equities climbed a huge wall and closed
higher on Friday. The S&P 500 ETF - SPY is up 3.2% for the year. The Dow 30 ETF - DIA is as of this week still
below the line at about -1.12%. The Nasdaq 100 ETF - QQQ is way ahead of the pack and is up 12.74%.
This week our focus fell on this Metals/Mining stock - Steel Dynamics, Inc. - STLD which gained slightly in price from the prior week.
The stock logged a 52-week high on May 17th at $52.10 and has since been correcting. On Friday it closed at $46.39. The May 17th breakout
could not succeed and we believe this is mainly due to the dynamics of the tariff situation that's keeping investors cautious.
STLD manufactures a variety of steel products. The company is scheduled to release Q2 earnings on 7/25 which is just a few weeks away.
The stock is trading above its 40-week SMA and as of now technical signs of finding support around this average are not conclusive.
Earnings Q-0-Q and Y-o-Y are expected to be solid which is a positive going for this stock.
If the broader market reacts positively to the tariff situation in the coming week - with the impetus provided by Friday's positive action -
the stock may find support at its 40-week SMA and if the tariff situation resolves favorably to the US - a big if - this stock has the potential for
Self-directed investors will want to perform more research on this stock to see how appropriate this is for their own portfolios.
Good Luck and Happy Investing!