[CLF] update

In the backlink I was looking for a big bottom in the $2-$2.20 range because that's about where I expected wave green 5 to end up.  In other words, because of EW modeling and nothing else.




Instead of just being doing with it quickly as modeled above, the herd turned it all into a massive 4th wave HT pushing green 4 out into early to mid November.  In doing so it clued us in that the rest of my count must be correct because my model shows mid July being green 3 and now we have a HT green 4?  Too coincidental.  Since then the shares did exactly what they are supposed to do following E of 4: they collapsed rapidly.

If it were any other EW counter except me then I would say the bottom was already in but I have to count that stab down towards $2 as w3 and the wave coming up off it was 3 wave corrective of some sort, not motive.  So I think CLF gets one more chance to be bought on the cheap before the buyers step in.



Foks, they are pricing commodities as if they were all going bankrupt.  We know that this is not going to happen.  I have read the CLF earnings transcript and they are in no imminent danger of BK.  In fact, they should have higher revenue for the next 6-9 months by harvesting exposed coal without removing the waste dirt from the next section which would expose the next harvest of coal.  That is because they are selling their coal mine.   But the point is that CLF is not going to BK any time soon and as soon as the dollar begins to weaken I guarantee you that money will flow back into all commodities and the dollar is near a wave 5 peak right now.

They hate CLF at $2.  They'll love it again above $7.  The current price has nothing to do with valuations.  It has to do with prior leverage that is being unwound in this sector.  Instead of being afraid to buy because the price is down, that is exactly when people should be buying.  Do people wait for the price of other things to rise before buying?  This has been an historic sell off in all things energy.  Enjoy the low prices because the cure for low prices is and always has been low prices.  Those who think energy is going to stay low forever just don't know how difficult and expensive it is to acquire energy resources.  This is not pithy banking or finance folks, this is hard work, real work.  Its value cannot stay low forever. 

Buy low, sell high.