Pockets of Opportunity: Street Sense

Naturally, much of these moves in commodities are highly correlated with a falling dollar. While we've seen (and heard) about a tanking dollar and the negatives, let's remember what has happened to the currency in the last year or so. Last fall, the greenback surged on safe-haven buying in the face of a massive storm. That's been repealed. In fact, the buck is just back to where it was in the summer of 2008, when the markets were reaching highs!

Lacking a catalyst, the dollar is probably not going much higher but may languish and bottom for awhile, until the Fed considers tightening. That could be months away. So for now, a weak dollar trade is likely good for equities in commodity-related sectors. Some of the groups that look attractive include steels, metals, oil services, drillers, refiners, fertilizers and gas. Stocks in these sectors include Schlumberger(SLB), Transocean(RIG), Randgold(GOLD) and BHP Billiton(BHP).

Lang is conducting a "Trader Talk" Web seminar at 4:10 p.m. EDT Tuesday in which he will analyze the markets. Click here to register.

>To order reprints of this article, click here: Reprints