U.S Markets Follow China Housing Speculation

The U.S. markets have run up to the flat line and stalled after an ugly gap lower this morning. Commodity stocks are leading the chart with speculation that China will soon end their bearish cap on housing. Any change in their policy will result in commodity demand surging. The Shanghai Index jumped over 2% last night on this news. No sooner did the U.S. markets open, then stocks like United States Steel Corporation X, AK Steel Holding Corporation AKS and Schnitzer Steel Industries, Inc. SCHN all jumped 5-7%. Commodity stocks started to turn the market higher immediately, then Goldman Sachs erased all the losses it had on earnings and went positive. This helped the markets erase a majority of the losses for the day. If China truly starts pump up their economy again, this would be extremely bullish for all commodity stocks. In addition, China commodity stocks like China Armco Metals, Inc (CNAM) along with other plays trading at tiny P/E's could be in line for a major move. The U.S. markets are clearly following the China move today. To find out the next money making play and to get expert guidance, analysis and education, join the Research Center. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com