materials, miners and metals stay near the bottom? Makes no sense and something's gotta give soon
European is still in recession. And Chinese growth is slowing down due to European. So the prices selling iron and coal are down. So CLF is very weak.
If we are subject a market pull back (correction), CLF will go down another 20% to 30%. I am planing to add my positions at $15 and $10.
P.S. currently position: owning 3K shares at average of $19.
China is not slow because of Europe. China has realized that building major airports in every village, superhighways to nowhere and super cities in deserts doesn't yield desired results, so they stopped buying as must Iron Ore as they used to.
Crisis in Europe is obviously not helping either.
Market is going up mainly because Fed is printing money so investors put their money into assets including stocks. This company is a bad asset because of falling Iron Ore prices and too much dept. Iron Ore prices are falling because investors are not interested in steel. Construction industry is the only industry that is interested in steel but because general population will not be able to afford anything they build at these price levels they choose not to build anything until the asset bubble deflates. There is really no light at the end of the tunnel for mining industry until the asset bubble deflates.
Yes, I see the lack of interest in mining & metals, BUT that doesn't seem to jive with where the users of ore & metals are, Autos, machinery, equip, Rail - example: check out where rail stocks are at - they are heavy users of steel for cars, track, locos, etc. Autos like Ford, GM, etc all toward high end of range, If the economy is doing so poorly, how are these companies doing so well, yet not using up any resources? Basic materials s/b running with the rest of the market OR else the rest of the market is way overbought IMO
It has to be global in nature-the spot IO price keeps going down. They call for it to go to $100. Possibly it will-I sold 10K shares @ $20.40 and am sitting on the sidelines until the IO spot price settles. GLTA
It kinda is "giving" way but unfortunately to the down side. It appears there is too much ore production and too few projects to use the ore. Japan seems to be rising while China is slowing down. That might help.