2/8/2019 – $CLF

Stock Overview: Cleveland Cliffs Resources ($CLF) was an earnings winner up 10% on the day.

Market Overview: The market is giving back big gains from the past two weeks on negative trade headlines and FED commentary.

Technicals: The daily & weekly candles on this name are bullish making higher lows higher highs – everything you want to see in a multi day runner. Huge relative strength in a weak market.

Trade: The trade was buying calls after the VWAP flush and reclaim. The stock is loaded with shorts with 16% interest and the stock near a 52 week high.

Summary: The entry was clean and green right from the start. The stock grinded to $12 before flushing back down to 11.81, pretty close to my entry. The stock eventually went higher testing the $12.10 HOD.

My exit was a disaster selling on the break below $12. I should still be in this trade holding for my original $12.50 target. With the level of short interest and price action I wouldn’t be surprised if it got there today. Completely abandoned my trade plan after seeing the quick $12 flush. Poor patience is costing me some huge gains. The stock could be a runner again next week if it gets upgraded.


Result: +.17 contract (GAIN)


Trade Plan

Entry: $11.79
Target: $12.49

Actual Exit: $11.99

Risking ..20 to make .70 cents


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