Jan 4, 2012

Nice start to the new year in the stock markets. Volume generally a little low but I expect we will have to see the reaction to better gauge the strength of this market. Metals up yesterday and today. Steel particularly strong. I talked about Steel Dynamics last November and we finally got the buy signal today with a breakout to a new high on increased volume. This is what it means to buy new highs. In this case the move may be the confirmation of a trend change from the long downtrend. Time will tell. Here is the chart.:

I look for good support at the recent highs if the price falls back. If it goes much lower than that I will consider myself wrong.
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