Steel Stocks Jump

Includes: AKS, CLF, MT, MTL, SID, SLX, VALE, X
by: Bespoke Investment Group

The materials sector has been performing well lately after struggling to outperform for most of 2013. As shown below, the steel stock ETF (NYSEARCA:SLX) has posted a big gain over the last month and a half, and it has skyrocketed nearly 9% over the last three days alone. The long-term downtrend that SLX has been in is now broken, but now the ETF is attempting to get above a key resistance level that formed back in May. If the ETF can break above this resistance over the next day or two, traders may be looking at a new long-term uptrend forming.

Below is a list of the stocks that make up the SLX steel ETF. As shown, seven of the holdings have jumped more than 10% over the last three days, but all seven of them are still down significantly in 2013. They have a long way to go to get back into the green.