The price action is terrible. The news is terrible. The sentiment is terrible. In other words, things are definitely "bad" for the steel sector. Most folks would call you crazy for owning these stocks and that's precisely why we suggested you buy.
U.S. Steel (X) is America's largest steelmaker. It makes steel that goes into automobiles, structures, appliances, and containers. The "bust" conditions destroyed the stock. Shares fell from a high of $60 in early 2011 to a recent low of $16 – a 73% decline.
Steel was the next train ready to leave the station. It's already on its way. The stock is up 20% since recommended it two months ago. Just yesterday, shares of U.S. Steel broke out to their highest level in seven months.
Meanwhile, U.S. Steel has quietly registered a large short-term gain and it has done so on strong trading volume. This is a sign that big-money investors are buying shares in this beaten-up "boom and bust" play. Big investors are stepping in to help produce the next boom.