Metal Stocks Rise On China, But At Lofty Levels

Data from China continues to be better than the markets expected and in turn, metal stocks continue to flourish. Expected demand from China leads the way. Stocks like Southern Copper Corporation (USA) (NYSE:SCCO), United States Steel Corporation (NYSE:X) and AK Steel Holding Corporation (NYSE:AKS) are all higher today and have been recently. The standout definitely is Souther Copper as it has run from $27.53 on August 25th, 2010 to a high today of $33.40. That is a $5.87 move or 21% jump in just two weeks. While Southern Copper is hot right now in the eyes of investors, a resistance level does loom at a double top per the chart below. Short term this stock is very extended and should it reach $33.75 this week, a pull back would be in order. To get more analysis, guidance, swing trades and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com