Market Analysis | US Domestic Steel Industry

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US Domestic Steel Sector

As the film above illustrates, we have recently used Evolution 4.0 to research the US domestic steel production / mfg sector. Ironic given our close proximity to the turn of the century steel production facilities in Western, PA.

To summarize the Evolution 4.0 research we performed:

The possibility of the implementation and increase in taxes / tariffs on imported steel could send us domestic steel producer equities (such as $TMST Timken Steel) much higher. Similar effects can be seen in the aluminum industry over the past several years.

The increasingly nationalistic rhetoric of presidential candidates could also have a dramatic effect in terms of a "news driven play", which would send the US mfg sector higher on the idea of everything being "made in America' again.

The two sector ETFs that we have performed analysis on NYSE:XME SPDR S&P Metals Mining and NYSE:SLX Market Vectors Steel ETF both show uptrend potential heading into the 2017 election. We forecast nationalist / populist rhetoric to drive the sector higher. In addition the inflow of liquidity that is currently driving the market higher (as well as continued central bank dovish policy) will also boost the sector according to Evolution 4.0 research.