When you’re buying into a single safe haven as the world burns around you, you must be cognizant of several things.
1. No one is safe.
2. Eventually your trade will become crowded and ruined.
This is precisely how it happened in 2008 and it’s happening now again with coal, ag, oils and soon steel.
CLF posted great numbers, ripped 10% higher, and is now down.
The entire market is heaving over and I don’t want to get too dramatic here, as I am barely profiting from this collapse, up 1.3% with 78% cash. I will admit, however, we are oversold and we can bounce Monday.
But let’s not be stupid and see this for what it is: a rout. The market is sick and all of the safe havens smoked out.
Trade accordingly.
