I have never been shy on my opinions of CLF and how it will trade, but I will confess, that this activity today confuses me. Granted, the
whole sector was hammered this week, but given how they beat for q1 and q2, and the elevated IO pricing of late, this is perplexing.
Maybe the VIX being up from 13 to 20 is such a short time span is scaring investors in a name like CLF that has had its troubles, and is still perceived to be a challenged company, and is massively shorted. I guess when WS is fearful, they puke up on some stocks more than others.
It may simply take earnings to reverse this. For those who bought CLF from $17 to $20 and have watched clf drop since $24 without having held any advance, maybe they just want to preserve the remaining gains they have. Otherwise, who is left to sell CLF?
You have to go back to 2007 for this level in CLF (other than the 08 and 09 meltdown), and I doubt anyone is left holding CLF from that time to be selling today.
So the good news is maybe the selling is close to being done, because the volume that took it up from the low base of $17 to $24 wasn't strong, as the average 10DMA volume is probably 1/3 of what it was back than.