With the recent Tech stock rout that has plagued world stock markets, could it be time to look back to traditional (Old Economy) stocks ?

The chart above, Kingstream Steel Ltd, has shown a fairly strong uptrend since the April 17 tech stock correction on the Australian market. Of interest is the way it met resistance at the midpoint of the 28 cent range between the 48 cent high on January 11 and the 20 cent low on April 17. However also of interesting is the article in the Financial Review, Wednesday 31st May, page 5, regarding Kingstream.

Quoting the first paragraph,"West Australian Resources Minister Mr.Colin Barnett has convinced State Cabinet to meet the entire $192 million cost of the new Oakajee port at Geraldton - a move which represents a huge boost for Kingstream Steel Ltd in financing its $1.7 billion steel mill." Again see how the chart shows that the market knew this in advance. Of course the stock dropped 2 cents on the day of the article !!

One to follow long term