Dykstra: TIE Up These Calls

The U.S. economy and stock markets are in a tug of war between the bearish effects of weakening housing and real estate, which adversely affect financials, and the bullish influences of big-cap stocks with an international flair and the mojo tech stocks.

Titanium Metals(TIE Quote) produces titanium-based products for several industries including aerospace, military and industrial worldwide. The stock is in the middle of its own economic tug of war with its mix of business in the U.S. and Europe, which are showing some signs of economic slowdowns.

The stock should hold around the $31.00 level. It closed at $31.72 Thursday, for a rebound to its 200-day simple moving average at $33.35.

Titanium Metals is soaking up sales with its titanium sponge. The company's aerospace customers, which include Boeing(BA Quote), Rolls Royce and United Technologies(UTX Quote), use titanium for applications such as jet engine components and wing supports. The industry accounts for well more than half of TIMET's business. ...