My Industry Shorts

Discussion in 'Trading' started by ByLoSellHi, Apr 20, 2007.

  1. If I opened up a short position in steel stocks and metals/mining stocks, using 6 month expiration put options, I would be _______.

    Fill in the blank with the first word that comes to your mind. No need to pull any punches. I can take it.
  2. rich within 6 months.
  3. I can see where your coming from. Companies like ATI and IPS seem like they are in a bubble. Then there are the copper companies. Everything seems to just keep going mindlessly higher almost like oil did last summer. Remember last spring when everyone was jumping into oil then came the big splash in July when oil turned down and so did the oil companies.

    Some of the independent oilers were cut in half within months. I remember Cramer pushing some small driller called TMY and that went from 7 to 2 dollars in a matter of months.

    I can see where the demand is coming from for steel, i.e. India, China. I can see the fundamentals, but things look a little too rosy right now. The chart for ATI and IPS are starting to look like tech stocks in 2000.

    When things seem to look too good like oil did in April-May of last year, then I too start questioning how far it will go.

    We are in the "Cramer market" where you buy high and sell higher. Traders are simply running with the same old stocks that did them well before and trading them to higher levels.

    Eventually Trina Solar, First Solar, IIPs, and ATI will reach unsubstainable levels.