Because of this week: reasons for my bullishness on this stock
Everything that happened positively this week has been a driving force in my overall bullishness on this stock.
EU kept interest rates low, inflation coming in lower than expected, overall improvement even if slightly in EU
UK raises growth forcast from 0.6% to 1.4% and raises next year. Keeps interest rates low
US payrolls keep improving, huge consumer sediment improvement, GDP revised higher, companies earning more, US improves greatly then the rest of the world does. Rise in US trickles down to other countries.
Finally, while this hasn't happened yet I don't believe they will taper in December even with better numbers. Every is focusing on employment or inflation but are forgetting one of the reasons Bernanke didn't do it last time and it was because of the uncertainty of what the US government will do which is incompetent right now. This hasn't changed nor will they have any way to know what the government will do by the budget deadline in January so they won't risk tapering until after Congress gets its act together since Fed knows Congress can derail recovery itself.
Then look at Brazil. SID has 2 great quarters and the last quarter showed not too much of an improvement of Brazil aspect with steel being flat there. Well we knew that and then Brazil GDP went down 0.5% instead of the forecasted 0.3%. Well we already knew that and then we have all these great auctions happening to start improving infrastructure. So if SID was doing great with Brazil sucking last quarter which is baked into the price that means they don't have a positive outlook baked into the price and I think things will be more positive for BRazilian infrastructure growth.
And heck, falling r$ and SID sells ore in US$s is only beneficial for them.
Yay longs! I'm hoping to get rich on options personally so very excited about this week and I do appreciate the shorts for pushing down the stock from the $5.8 highs even if it made my November $6 calls expire worthless