The current geopolitical events are tragic and have without a doubt been devastating to every party involved.
And I’m not talking about just people on the ground, although my thoughts and prayers go out to every single one of them.
But sadly, the Russian invasion into Ukraine also has some serious and very global economic implications.
There’s one group, however, that’s been a great beneficiary of this conflict, even if unwillingly so… it’s commodity traders!
As you may be well aware, Russia has a lot of natural resources… and I mean A LOT!
The country ranks in the World’s Top 3 in nearly every major resource category.
So it’s only fair that a trade disruption with such a big player will reverberate all over the planet – and it has been: global prices for many commodities have been on a strong uptrend over the past few weeks.
And, obviously, that presents some great trade opportunities!
Just a few days ago I told you how Jason Bond applied this logic to develop a trade idea in Indonesia Energy (INDO) – that stock ended up flying from ~$7 to $14 literally overnight.
Today, we got another one of these… and it’s Ben Sturgill’s recent alert on US Steel (X)!
Let me show you how it went.
Ben’s X Idea
Ben Sturgill’s US Steel thesis was predicated on the global disruption in commodities markets, and the idea that prices will likely keep increasing in the short term.
But the trade itself was based purely on traders’ favorite technical markers: Ben noted the incredible momentum of X stock, as well as unparalleled relative strength – all the while the general market was struggling to find footing.
Here’s what he wrote in his email alert yesterday:
“The stock US STEEL, X, has been up over 25% in the last three trading days, from a low of $21.89 on 2/24/22 to a high of $27.55 yesterday. This is truly the ‘Man On Fire’ of stocks right now in the materials sector.
Few stocks are able to command that kind of leverage to the upside in this market, and now that X has made that move and consolidated somewhat on the 30 minute chart, I wanted to take a closer look.”
In short, the idea was simple – the stock has an amazing technical setup, greatly supported by the geopolitical and economic tailwinds.
Here was Ben’s trade idea:
“Therefore I like this trade:
X (US STEEL) TRADE IDEA
18 MARCH 2022 CONTRACT
$28 CALL AT 1.27
EXIT = AT OR ABOVE 1.60”
Ben never took the trade, as Jury Duty got in the way, but the idea ended up working to a tee. Here’s X chart this very morning:
The stock is traded above $28 in pre-market, continuing the momentum of prior days and Ben’s contract opened around $1.80 – far above his $1.60 target.
This is a great example of how you can combine global macro events with powerful short-term chart setups.
