Monday, 7 January 2008

Selling United States Steel (X)...and buying it back!!

Just sold about $43,000 worth of United States Steel (X), at $105.04

I don't have much rationale on this one, other than a steel company is going to get CRUSHED in a recession. I read a couple of bullish articles on Seeking Alpha here and here, although don't see why it's different this time. Just look how any steel company did back in 2001-2003, including US Steel which was down in single digits.

2y Chart of US Steel

I'm pretty excited about this one. In fact, from selling it 30 minutes ago to finishing writing this, I'm up $2,000 already???

Just looking at Google News...don't see anything other than this recommendation by Deutsche Bank rating the stock as a high conviction buy.

In fact...I'm buying the short back. Just paid $99.53, to make a profit of $2,242. Sweet!! Had planned for that to be a long-term trade, but no way I'm turning that down for 30 minutes of work!!

Anyway folks...still seems a decent long-term short to me, I'll keep it on my radar.


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