Those stocks whose earnings tend to rise and fall with the ups and downs of the economy are identified as cyclical stocks. They are mostly stocks of substantial companies in industries which were once growth industries but have grown up so that they form the major part of the total economy. They are stocks usually selling at modest prices in relation to the capital they have invested in the business and to their proved earning power. Most of them are being handicapped by a substantial overcapacity, with an inevitable decline in the utility of their machinery and other assets. It does not follow, however, that these assets have lost their usefulness. The excess capacity is apt to be absorbed by an appreciable pick-up in the rate of the nation's economic growth.

For Pro Secrets and Strategies on all Aspects of Commodity Future Day Trading, visit
Commodity Options Trading