Taking 3% Short Position as Cliffs Natural Resources Heads Lower

The markets rarely do what we want them to. Instead, they seem determined to act in a manner that causes us confusion, frustration, and pain. However, occasionally market activity does confirm our views and allow for profitable trades. When such opportunities occur, we must not allow them to slip away.

An example is a stock we have traded twice before in EPIC Insights-Cliffs Natural Resources (CLF). We have owned CLF for both fundamental reasons-it was cheap and would benefit from rising commodity prices-and for technical reasons-it was oversold and destined to bounce off support. These two transactions led to gains of 82% and 33% respectively. Now that this familiar pattern is repeating, we will trade CLF a third time.