Steel Dynamics Inc. (STLD: sentiment, chart, options) was one of many stocks in the steel sector today to receive a bullish endorsement from Goldman Sachs. The brokerage firm added STLD to its "conviction buy" list, bumping Nucor Corp. (NUE) from the roster in the process. In a note to clients, Goldman stated its belief that steel prices will bottom this month.

The brokerage firm maintained its "buy" rating on NUE, but clarified, "Given our expectations for a near-term increase in steel prices, we believe Steel Dynamics offers a higher potential reward than Nucor."

Despite scoring a coveted slot on Goldman's "conviction buy" list, STLD is down more than 1% today. The shares could be succumbing to widespread weakness in the equities market -- or, today's drop could indicate that the stock is beginning to run low on sideline cash. During the past 10 days, STLD has racked up an International Securities Exchange (ISE) call/put ratio of 5.99, as traders have purchased nearly 6 times more bullish bets than bearish.