Dennis Gartman, founder of The Gartman Letter explained the reasons behind U.S. Steel’s recent slump.
1. The auto companies are not taking any of the increased prices.
2. China is coming off their Olympic build-up.
3. There is an overall global slowdown in steel demand.
“All of those things were priced into the steel prices. It’s just a normal ebb and flow of the economy.”
Gartman also said, “Corn prices can come off $1 from their highs, beans can come off $2 or so from their highs. Steel prices could go down by 25 percent or 3 percent from their highs.
"Crude oil could fall $15 or $20 from its highs and still be, interestingly enough, in a well-defined bull market. But are they punishing everybody who got into the commodity markets late? You bet.”
Disclosure information was not immediately available for Gartman or his organization.