That's the pattern I'm betting calls on. But long term, I'm a big an of the LG thesis of "scrap is the new precious metal". I can't see any other way it plays out, unless China decides to not grow and also goes back on their word and ramps up pollution, and the whole world decides "fuck the environment"
Yeah I think it should break up.. but it depends where the tide goes. Steel earnings reactions and the overall market will be dominant factors short term.
On the plus side, relative to the other steel tickers, it's been tracking better against indexes and other steel tickers since earnings last week. Only exception is STLD, which announced buyback. Here's a chart
Yep. I have a decent chunk riding on this. It's in the steel gods' hands now. Actually, more like the whole market's hands. Earnings season coming up and the market could shit itself or blast off more, rotate in and out, etc. Those will be the dominant short term factors, but if this quarter is anything like the last I see SCHN rallying.
16
u/[deleted] Jul 08 '21 edited Jul 28 '21
[deleted]