Is the Reflation Trade Starting To Turn?

Dow: +8.84…
Nasdaq: +24.38… S&P: +0.65…

Copper, steel, and various metal and mining stocks have been in decline since they topped out back in the Jan. & Feb. time frame.  Have they bottomed and are they ready to turn higher again?  That’s the question.  If so, there will be gobs of money to make. I mention this because these groups had good days today off their respective bottoms.

Steel and Iron +2.7%

Copper +2.6%

Metals & Minerals +1.8%

Note that XME (metals & mining) had a really good day +3.3%.  Remember that if the worm has turned on this secror….it can get as hot as biotech.

I’m not sure if today is just a “one-off”.  We have seen head fakes in the past, but it bears close monitoring going forward.

Energy (XLE) continues to act like a drunk walking in traffic. It’s right on huge support going back to last year, so if it breaks these levels look out below.

Beneficiaries of a reversal in these sectors include names like CLF, BHP, VALE, RIO, X and others.

See you in the morning.

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