If you scan all of the
TC2007 sectors and rank them by their performance since the beginning of this year you'll see some interesting things. Despite the big move in the Nasdaq and correction in commodities, two commodities sectors are in the top twelve sectors: steel and silver. In fact since gold has bottomed silver and steel stocks have been on a tear, going up at a faster rate than gold stocks. SLW and HL are among the top performing stocks in my holdings. Other base metal stocks have also taken off. Take a look at PCU. Those calling for a collapse in base metals six weeks ago that would take down gold were dead wrong. In fact the base metals are leading gold higher. The steel sector above is putting on the rally that I think gold stocks are going to do in November.

After looking through the individual steel stocks, Brazil's Companhia Siderurgica Nacional(NYSE: SID) looks the most attractive to me. It even pays a 7.60% dividend and has a P/E of 10.31 and forward P/E of 8.16. Being located in Brazil is another big plus, because if you remember last week I told you that Latin American stock markets are breaking out and look like they are going to rally for six months.

Some people asked me why I didn't buy the Latin American ETF that I talked about. The reason is because I'm all out of money at the moment. I have very little buying power and am not going to buy anything else until it increases. Once the XAU goes above 140 I will likely make some changes in my portfolio. But for the moment I'm just hanging on to what I have - not selling anything or adding on. That doesn't mean I stop looking at the market and looking for opportunities though. We have to keep track of what is going on and you may have the extra cash in your portfolio that I don't so yo can benefit from some of my ideas.

I would like to see SID consolidate between 33 and 30 for another week before buying. If it does that it will provide a safer entry point. The same goes for this stock:

Universal Stainless & Alloy Products(NASAQ: USAP) also looks very attractive. It also is posting a reasonable P/E of 11.03 and forward P/E of 7.74. With a market cap of only $192 million its a small company with a float of only 4.25 million. That means it can really move. But I'd like to see it pause around 30 to before buying. This is the second best performing sector in the entire stock market so far this year so they bear watching.