Right now might be a great time for investors to switch their attention from technology and banking stocks and begin to focus on commodity-related stocks.
Why, you might ask? Simply because both tech and financials have already made some very big moves. Just look at
Research In Motion
It would be safe to assume that financial stocks pose a lot of risk at current lofty levels in front of the much-anticipated bank stress test results, set to be released on Thursday. The bank stocks could also be due for some profit-taking following the news today that
Bank of America
might need $34 billion of new capital just to survive. There are also rumors in the market that
will need a significant amount of capital.
Technology stocks could be due for a significant selloff in front of
earnings report, due out after the market close tonight. If Cisco's earnings don't impress Wall Street, the entire sector could be hit by a wave of selling and profit-taking.
On the flipside, commodity-related names have been largely ignored by Wall Street and seem to be flying under the radar of many investors. Commodity prices have started to firm across the board for oil, copper and steel, plus the dry bulk index looks to have found a floor. The massive stimulus plans in both China and America could also provide some fundamental support for the sector as we move into the summer months.
With this in mind, let's take a look at a few commodity stock charts that could be setting up to make significant move in the not too distant future.
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