I think the market is telling you CLF is very overbought, and the fundamentals do not support this move at this time. Spot ore prices will drop later, and the markets look ahead, not in the rearview mirror.
The markets are stupid. Who knows where spot iron ore prices will be in 6 months? China will be building more linfrastructure, with the new leaders in place, otherwise they risk a peasant revolt. Japan is printing yen to invest in infrastructure, U.S. is rebuilding after hurricane Sandy. Also, the housing recovery in the U.S. will continue. My bet is that iron ore prices will hold and even trend up a little this year. CLF should do well by the end of 2013 (IMO), but I still think we can see it drop more so I'm not buying in until after they announce Q4 earnings. GLTA
mistake, sell high I liquidated my entire portfolio friday morning the market will correct over 10% due to spending cut negotiations during february. If you thing the reaction was harsh last month then hold your breath the republicans will want real cuts and it will most likely shut the govt down for a few days unless Obama does something that will challenge constitutionality