Today, markets were up big; yet CLF was down in heavy volume -- evidence that smart money were taking the advantage of an up day to unload.
If CLF couldn't sell iron ores to China then and now, when can it?
I was long CLF and tried like heck to seek reasons to support my thesis long in my DD, only to find evidences supporting the opposite.
Another thing: I have serious doubt about CLF's book value.
How and who did the valuing what are still under the ground?
There gotta be more than what meets the eye in the Bloom Lake closure.
It's was like stop making/selling umbrellas in monsoon season.
Ok. Assume China speculation won't come true. CLF will be dropping to 14 (50% loss) from here.
What happens if will become true? CLF will be skyrocketed to 40,60,80,100 who knows (at least 2,3,4,5x gain). It's cyclical stock. The chance the speculation will be true is a sure thing as long as CLF is not BK before that.
It is worth to take a risk here. I found in many cases that we get a buy signal when there is a strong evidence to support the buy, the stock is almost hit the roof and it is too late to jump in.
Where did the $40 come from, your figment of imagination?
The 9% bounce in low volumn was a typical short covering.
It stops right at the downward trend line.
Without a next-day-follow-up, it served to confirm the stock is in a solid, proven downtrend with downward momentum still in force, as evident by today's price action -- a high-volumn price drop in a very bullish day.