|This Trade Was Closed February 29, 2012|
Closed trade out on Jan 25
Original Trade Post:
US Steel is higher today as shorts begin to cover their positions. You can tell the short covering in the attached chart, where clusters of large volume trades are taking place today (Wednesday).
Bullish factors over the last couple days:
- Alcoa’s earnings report forecasted stability in aluminum demand, which is bullish for commodities overall
- Lennar reported earnings today, reporting a 20% increase in orders, hinting at good things for the upcoming spring selling season. More homebuilding = increased demand for Steel and other commodities.
- Overall S&P 500 is in good technical shape now that it’s broken to a higher range above the 1285 level and holding.
- The Ticker: X
- Target Price: 2.39 per share
- The Trade
- Buy to Open Feb 2012 29 Calls at 1.60 or better
- Trade Opened: January 11, 2012
- Trade Closed: February 29, 2012
Chart courtesy Finviz. Click to open larger.
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