Many exchange traded funds (ETFs) have had wild rides and large drops lately, but the Market Vectors Steel ETF (SLX) is one that has shown significant bipolar performance. At its high in July, it was up 57% year-to-date. As the subprime problems and credit concerns continue, it has people in the steel industry concerned that consolidations could end, according to Ian Salisbury for the Dow Jones Newswires. These fears have sent steel stocks spiraling downward. SLX is another example of a strong ETF that suffered a hard, fast fall. However, ETFs that take a tough beating tend to recover the best. SLX is currently above its trend line and is up 27.2% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.