Evaluating the sentiment in any underlying stock is as simple as checking who is buying (and how much) and who is selling. However, seeing unusual buying or selling activity is only half the equation; the other half is up to investors to figure out whether these buyers or sellers are right in their decisions to position themselves. Reverse engineering these positions can help these investors form a tentative thesis of their own.
After this step, an opportunity arises in two ways, and this is the nature of today’s findings in shares of United States Steel Co. (NYSE: X). The first way an opportunity in the basic materials sector arises from spotting these buy or sell volumes is for investors to follow the underlying thesis and profit from the stock in question.
