Yesterday, the DOW barely went up and the Nasdaq finished the day in the red, with some steep losses in a few of the popular fad stocks. However, we saw nice rallies in many commodity related stocks as the “great rotation” out of last year’s fad winners and crypto and into commodity related stocks continues. The top gaining S&P 500 sector yesterday was energy, with the XLE ETF, which I own, up 3.85% for the day. My brand new top stock pick of the month also had a nice rally, and I believe it is a play that I’ll be happy with all year.
One commodity stock I own that pays a big dividend and still has a good entry point is Vedanta (NASDAQ: VEDL), a giant iron ore, gold, and aluminium mining operator based in India. The stock has a $14 billion market cap and pays a 4.79% dividend. It also has a nice entry point with oversold stochastics below 20 and tightening Bollinger Bands, as you can see from this chart.
I don’t expect this stock to go up as my new small cap stock pick could, because it already is a giant company. I talked with Jim Goddard of www.howestreet.com about the overall action in the markets and the great rotation taking place in this interview.
For more on my new top small cap stock pick go here for my post on it.
-Mike
