Basic Materials (Oil) Stocks Making New Highs

Only thirteen stocks made my new highs screen based on specific criteria as described in this post. Of the thirteen stocks, half were from the oil and gas industry which tells me that it’s a short term leader during any up-trends in the recent market downturn. Steel and iron, specialty chemicals and synthetics were also among the few stocks making new highs on strong looking charts (when compared to recent beaten down leaders).

Each of these industry groups fall under a broader sector labeled “basic materials”. It couldn’t be clearer as to where the smart money was throwing funds today as volume spiked across these industries and especially among the stocks making new highs.

I understand that recent market leaders such as AAPL, BIDU and JASO (up more than 12%) were also higher today but they are still far from new 52-week highs and some are still under key moving averages such as the 50-day.

Basic Materials: Independent Oil and Gas, Specialty Chemicals, Steel and Iron and Synthetics flexed their muscle today and the stocks below were among the few making new 52-week highs. Making new highs after the recent market downturn speaks volumes for the relative strength of these stocks. Several of them are extended from ideal entry points but do not leave these off any near term watch lists on the long side.

Trade the trends – one of the simplest methods to make money in this world. I am not calling for a bull market but these stocks have support from the smart money and I have no problem jumping aboard even if it only last a short while.

Stocks hitting New Highs Monday on Strong Volume:

  • MTL – 111.60, Mechel Steel Group was up 10.60% on volume 97% larger than the daily average
  • EOG – 98.43, EOG Resources was up 4.58% on volume 112% larger than the daily average
  • SWN – 61.87, Southwestern Energy was up 6.54% on volume 63% larger than the daily average
  • RRC – 59.61, Range Resources was up 4.82% on volume 19% larger than the daily average
  • NEU – 60.97, Newmarket Corp. was up 3.90% on volume 341% larger than the daily average
  • KWK – 32.03, Quicksilver Resources was up 7.48% on volume 21% larger than the daily average
  • CCC – 18.09, Calgon Carbon was up 8.13% on volume 148% larger than the average
  • WMS – 39.85, WMS Industries was up 3.45% on volume 65% larger than the daily average

Study the charts as they are among the best looking in today’s market. It’s hard to buy new highs, especially in this weak market environment but if you must buy long, think about these candidates.










  1. Chris,

    Nice post. I’ve been seeing strength building in these sectors the last few weeks as well. MTL crossed my Point and Figure radar back in November and has come up on a couple reports since then as it trends well.

    I’ve traded NEU in the past successfully as a trend play and like it.

    Keep the good insights coming!


  2. Andy,
    MTL does look good when viewing a weekly chart. NEU is very interesting with new 52-week highs but late 2006 highs have not been crossed.

  3. Chris, thank you for the post. Nice job!! However, I still can’t believe this kind of Market. Don’t you think these stocks just bought by institutions for short term?


  1. […] Basic Materials (oil) Stocks Making New Highs […]

  2. […] couple of weeks. MTL is up over 13% in less than two weeks since I highlighted it in a post titled Basic Materials (Oil) Stocks Making New Highs MTL – 111.60, Mechel Steel Group was up 10.60% on volume 97% larger than the daily […]

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