The main headline this AM session is the BoJ currency intervention (that will go over well), but I feel that there may be some other back page news that can lead to negative price action. This kind of news reminded me of the eurozone debt crisis, where we started to see bits and pieces of news come out about Greek debt before the market really took hold of it.
Over the past few days, we've seen steel companies soften their outlook going forward. Take these examples:
- NUE guides down. "Steelmaker Nucor Corp., which is considering a Louisiana site for a $2 billion pig iron plant, said Tuesday that its business is slowing amid economic uncertainty." [Source]
- STLD guides down. "Steel Dynamics Inc, the fifth-largest U.S. steelmaker, forecast third-quarter profit below market estimates, hurt by reduced margins due to lower sales prices." [Source]
- AKS warns. "AK Steel warned on Wednesday it expects to post an operating loss in the third quarter due to higher raw material and operating costs." [Source]
This patch of news could permeate to other "global growth" stories, and could affect the overall market in the next few weeks. Given that equity volatility is fairly low, it might be prudent to hedge or adjust your risk.