CLF looks like ready to break one way or the other. It is good for at least 15%-20% move from today’s market price. In case of more downside, the target would be 40-45$ in two weeks. Stop at 54$. If we break above 54$, then there is a good chance CLF is going to 60-65$ with the rest of the market. So, in general, no matter which way you chose, metal stocks are offering really good reward.
Posts Tagged ‘short sale’
Cliffs Natural Resources (CLF)
June 3rd, 2010
Shorted GS – Target 135 by April.
March 1st, 2010Today I got the confirmation, that the market has stalled at current levels. The chances that we are going higher from here are limited. Strong resistance at 1113-1115 area (possible double top in the making).
From here we might trade sideways for awhile in a tight range of 30 pts. or go lower to my target of 1030. Only time will tell, which will happen, but one thing is for sure, longs is not the place to be at te moment.
I have desided to try my luck with GS. The stock has been under a severe pressure lately, there is ton of resistance above 160$, and should the next drop in the stock market occur, it will be one of the biggest losers.
Again, I am playing this with options. Bought some 150 April Puts @ 3.70. Looking for 135 by April Option Expiration. Stop is above 161$.
This trade is tricky, though, as we can fast to 150-148 are then reverse to break 160 resistance, so I will be monitoring this trade closely.
The Day after Tomorrow. Equities overview.
January 5th, 2010The current price action is inline with my expectations. The projection about Financials turned out to be spot on, with the general market rallying “only” 1,60%, while the XLF index has gained more than 2,00%. So, we can say that the banks are pushing the market higher.
I have no idea of how long this party will be going, so I am placing my bets accordingly. Looking to short SPX futures near the 1135 area or on a breakdown below 1130 (see the chart below). Looking to add on the way down, otherwise will close for a loss.
SPX is continuing forming its rising wedge. To say fair enough, the chances of the sudden rise and the sudden fall are equal. For now I’ll stick with my view of a sudden collapse and will be looking to place short bets at a 1125 – 1135 area (see the chart below). There is also a possible Wyckoff Formation in the making.
GOLD also indicates, that the current rise might be done. See the resisting trend lines above? So, if you are into gold trading, I would suggest to short at 1122-1130.
PS. GOLD and SPX are trading at exactly the same level right now.
Resistance zone in the SPX. 19.02
February 19th, 2009New selling zone is 815-825. Market rallying above 830 is really unlikely event and IMPO the only reason e rallying today in the morning is option expiration tomorrow – market makers desperately need a close above 800, as this is where most of puts are sold.
Here is also one chart I found on stockcharts:
Will be buying puts in 815-825 area.
Market overview (17.02)
February 14th, 2009Although the market rallied above my 835, we still closed at low of the day. That is a good sign for the bears. What’s bad, is that there is a possible IHS in the making (see the chart below).
For the past month or so, the market was able to find support at 800-820 level. Every time we were in this range, we turned around pretty quick. How long could it last? Well, the general TA rule is, if the support/resistance is tested multiple times, at some point it will break through that area, and the longer this area holds, the more brutal will be the breakdown/breakout.
So, I tend to believe that this is the case with the market today. Here is what to expect next week:
Will be keeping an eye on [[spy]] levels 82.50-82.20 and 84.00-84.30. As I have written before, breakout/breakdown will indicate further direction.
Reversal Day (04.02.09)
February 4th, 2009There is a reversal day in the making. 848-852 area was a tought cracker to break.
As I am writing this, the S&P 500 is already in red territory. Next area of any meaningful support is ~830. One of the strongest evidences is a clear break below 844 and that supporting trendline didn’t hold.
From that on – 810-800. If it doesn’t hold, then 780 – here we go!
780 is also a 70 point move from 850, as was 810 from 880.
