After a short holiday break, the inflation trade is back, baby!
Indeed, the turn of the year has been oh-so-helpful in reigniting demand for metal stocks across the board. For proof, look no further than the SPDR S&P Metals & Mining ETF (NYSEARCA:XME), which is up 7.7% and counting over the past three days.
This week’s surge couldn’t have come at a better time.
The bout of profit-taking striking the sector in December ushered XME shares to the rising 50-day moving average. A breach of that would have inflicted unnecessary damage to the uptrend. Fortunately, it wasn’t meant to be. Buyers have materialized in force this week to defend their turf and place the budding bull run back on track.
And that means quality buy setups are flashing across the sector. Today, we’ll look at three metal stocks to buy — and the best ways to buy them.