Surging demand for global infrastructure has made steel stocks the poster child for this bull market. U.S. Steel (X) has surged more than 400% in the last 5 years.
But today, Goldman Sachs (GS) downgraded the sector citing slowing demand. Have steel stocks gotten too hot?
Eric Bolling says steel had a tremendous run. He adds that he read the Goldman report which said summer will see a downturn, but Q3 and Q4 will be okay.
Eric suggests this might present a buying opportunity and adds Goldman Sachs likes Nucor (NUE) through the Summer. Eric adds POSCO (PKX) and Cleveland-Cliffs (CLF) both continue to perform well.
Guy Adami adds it’s just a seasonal downturn. And he explains the Goldman analyst has been spot on in the space. Right now, he too is cautious on steel.
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Trader disclosure: On May 22, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (SWY); Najarian Owns (MDT), (STI); Bollings Owns Coffee, Sugar, Gold, Silver, March Natural Gas Futures, Is Short April Natural Gas Futures