USD 65.6046

0

EUR 72.6243

0

BRENT 59.13

0

AI-92 42.31

0

AI-95 46.04

-0.03

AI-98 51.8

+0.04

Diesel 46.03

+0.01

24

Steel And Oil Companies Control Market Leaders

The leading stocks will point out 15 companies that will carry the market's upward momentum in the first few weeks of a rally

The leading stocks will point out 15 companies that will carry the market's upward momentum in the first few weeks of a rally.

In this rally so far, if it's not oil, it's steel. And if it is oil, it's probably already broken out.

Take a look at the top 18 companies in our 85-85 Index. Fifteen are in oil-related groups. The three exceptions are the top three companies -- Gerdau (GGB), Mechel (NYSE:MTL) (MTL) and Companhia Siderurgica (SID), all steel issues.

These are commodities leading the rally. That means the market's strength may have a caveat. If, for instance, crude prices fall, many names from the oil patch may well follow suit.

Mechel, one of Russia's top mining and metals companies, signed a deal with Danieli & C. Officine Meccaniche, a private Italian company that develops technologies for steel producers.

Gerdau is poking into new high ground in a rebound from its 10-week moving average. Volume, though, has yet to impress.
A good number of top oil companies have pushed out of bases or off 10-week rebounds recently.

Apache (APA), an oil and gas explorer, broke out Feb. 25 in just above average volume. It's now just 2% past the 120.66 buy point 18om its 10-week rebound buy point.

Fellow explorer Continental Resources (NYSE:CLR) (CLR) broke out on Feb. 27 and later fell to the 10-week line. It, too, found support but is now 10% beyond the 29.91 buy point.

Quicksilver Resources (KWK) also is rebounding from its 10-week line. The buy point 15mes in at 38.82, but volume is so far quite tame.