Current snapshot shows that the breakout is expanding today. While CLF is up more than 10% today, I do not see this as definitive signs of a reversal just yet. Trade-able? Yes. Definitive? not yet. I will continue to slowly add to my holdings on this. I'm hoping for one more swoon to form a double bottom but if this begins to light the JATOs and gap up then we might not get that. This resistance break out is that of a year long down trend. The pullback tested from above and held the new support.
I remain cautiously bullish here with a small, untraded position due to the asymmetric nature that I believe this trade to be. I think the next big commodities bull will push this well north of $120 so at these prices I am treating CLF as a nonexpiring call on commodities/commodity price inflation. Note: this does not necessarily imply prosperity for the economy. It simply implies major sector rotation out of fluffy industrials and "millennial" stocks and back into conservative commodities.
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