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 trade’
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.
Flipping short here. 1015 is a possible target.
November 4th, 2009After today’s action I am strongly convinced, that 1061 level has marked a top for the coming month.
Check out the charts below:
For the short case to be valid, we need to hold below 1055, otherwise today’s retrace might be interpreted as a pullback before another runup to 1080 level. The only thing that makes this possibility look weak, is the speed of the pullback.
My suggestion is to enter short here at ~1050. Use a 5-6 pts. stop. if we break above 1056, reverse your position from short to long, with a 20 pts. target. On the other hand, if we continue lower, scale 1/2 of your position out at 1015-1017 and drive another half all the way down to 990.
Short EUR/USD at 1.4720-1.4700
September 25th, 2009We have finally seen some reversal action in the world equities markets. Commodities and stocks have retraced pretty nicely. Yet, I strongly believe this move isn’t finished until we some more downside on the EURO. Here is the chart:
I am planning to enter short position in EURO, as we reach 1.4700. This will be a right shooulder for the H&S pattern on the bigger time frame. This H&S is about 200 pts. tall from top to the bottom, so my price target is also in this range ~1.4500.
Selling SPY here at 107.20 (16.09)
September 16th, 2009Selling another 1/4 of my initial position according to plan at 107.20 (check out my previous post). This makes my average price for the position – 106.50.
PCU needs to corerct (7.01.2009)
January 7th, 2009
PCU has formed something like the rising wedge here, should be good short from this levels (would prefer to short from ~18.60 though) to 16.50-16.00 in a couple of days.
As for the broader market, if SPX is unable to close the gap, then my target of 900 stays intact.
At the moment it has fomed a potential double bottom, needs to break below 920-918 to continue downtrend.
