Gold, crude oil, lithium and iron ore have always been recyclable favorites among investors… But what if one of these was actually part of a list of the worst commodity stocks to invest in May 2021?

We saw a heavy amount of bearishnish in the stock market this past week, and deep selling in a lot of the names that have been getting crushed.

Technology, semiconductors, FAANG and stay-at-home stocks were among the names hit the hardest.

And Joy of the Trade’s Jeff Zananiri has a good feeling the area of Wall Street that’s been producing great returns lately will begin to show some vulnerability.

He’s talking about commodities-related stocks, so how about the worst commodity stocks in May 2021?

The Worst Commodity Stocks in May 2021

Jeff’s starting to see some strange moves in the charts of commodity stocks that were going parabolic… 

If you take a look at the BBG Commodity Index monthly spreads, you’ll notice the massive uptrend commodity stocks have been moving in.

Crude oil is up 35% year-to-date, aluminum is up 24% YTD, copper is up 31% YTD and even corn is up 34% YTD. 

And while these are all incredible moves, there was a particular movement in a commodity name this past week that waved a major red flag at him…

Iron ore has been climbing in 2021 — up about 30% on the year.

Economists predict this trend will last through the end of the year, as global steel consumption is expected to increase by 4.1% year-on-year.

However, the month of May isn’t being kind to this hot commodity…

Looking at the SSIF DCE Iron Ore Futures Index ETF chart, you’ll see that iron ore had about a 30% move up in April, and then a sudden, massive retracement in May.

Why’s that?

China. 

Check out Jeff’s short video below to learn more about the worst commodity stock to invest in May 2021. Be sure to share your thoughts in the comments section below.

Don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video! 

 

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 Before we begin, I want to let you know that this morning's Trading Pub Roundtable with Don Yocham — featuring Tactical Wealth Investor’s Garrett Baldwin, Austrian trading expert Achim Mautz and yours truly, Senior Strategist Roger Scott — will be held at our new...

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