23-06-2023, 07:46 AM
I found this interesting linkage between steel prices and the interest in the steel sector. Refer to the chart below. The top chart shows the hot roll steel prices while the lower chart shows the interest in the term "steel sector" as tracked by Google Trends.
You can see that the interest in the term "steel sector" increased in 2021/22 when the prices of steel spiked in 2021/22
What does this mean if you are a short-term trader? Go in when there are spike in steel prices as there are going to be more players.
![[Image: Steel-price-vs-interest.png]](https://i.postimg.cc/NG4GBf6K/Steel-price-vs-interest.png)
But if you are a fundamental investor, is this the correct way to look at things? I think it is more appropriate to look at sector performance such as that illustrated below taken from the article A tough 12 years for Bursa Malaysia steel companies.
Moral of the story? Different investing styles have different ways to look at things. Don't use those for technical analysis if you are a fundamental investor and vice versa.
![[Image: Steel-sector-update-ROE.png]](https://i.postimg.cc/4dzsrqGh/Steel-sector-update-ROE.png)
You can see that the interest in the term "steel sector" increased in 2021/22 when the prices of steel spiked in 2021/22
What does this mean if you are a short-term trader? Go in when there are spike in steel prices as there are going to be more players.
But if you are a fundamental investor, is this the correct way to look at things? I think it is more appropriate to look at sector performance such as that illustrated below taken from the article A tough 12 years for Bursa Malaysia steel companies.
Moral of the story? Different investing styles have different ways to look at things. Don't use those for technical analysis if you are a fundamental investor and vice versa.