Quick Win by the Algorithm

United States Steel Corporation

On February 18th, 2016, the I Know First algorithm gave a bullish signal of 13.27 for the ticker X with a predictability indicator of 0.54. In accordance with the algorithm’s prediction, X jumped 55.2% in the following three months.

United States Steel Corporation (U. S. Steel) is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. 

The US steel industry has moved higher as a whole. Indeed, the U.S. government has gotten more serious about hitting foreign competitors with tariffs to thwart dumping. Since there is too much steel being made around the world, and foreign companies have been intensively selling into the U.S. market, it was about time that US valorised steel made on his own land.
Also, in late April, X accused China of stealing trade secrets. With such cases, there are even more reasons to expect actions from the US government, a good news for the U.S. steelmakers.
In addition, there has been a bullish trend in steel pricing. Along with its first-quarter update, Nucor announced that it expects the second quarter to be a good one, as the market is accepting recent price increases. During its quarterly conference call, X discussed some price-increase successes, which bode well for its future. Higher utilization suggests increasing sales and helps to reduce steelmakers’ costs.

The steel industry has been trapped in recession since 2007 to 2009. It has been pretty brutal since then. While some U.S. steel mills are better positioned than others, the current pricing improvement suggests a better second quarter for all.

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