I am buying back some positions I've really cut to the bone of late today on pullbacks to their 20 day moving averages
- Mechel (MTL) in $147s
- Alpha Natural Resources (ANR) in $48.00s
- Arch Coal (ACI) in $55.60s
- CVRD i.e. Vale (RIO) in $37.60s
- Yingli Green Energy (YGE) in $21.60s
- CF Industries (CF) in $135s
Once again, not going hog wild and these are relatively small purchases of the $4-$6K variety as I scale back in things I sold off the past week (ex Yingli which is a brand new position from earlier this week)... this could be day 1 of a much longer move down in commodities, but my long exposure is very low. All these charts look almost identical so if you look at one, you see the same pullback in them all. Right now we are back to the red line, the 20 day moving - I'd love to see a pullback to the 50 day line (green). Since we cannot predict the future, I am simply rebuying stakes here and if this is the "bottom" (which I doubt) at least I have more exposure. If it weakens further, I buy more lower. Then I starting selling off lotsl when everyone tells me why the heck are you selling the hottest sector(s). Keep repeating for a few years and you make your investors a lot of money ;)
I have my shopping list ready and trigger alerts set, as other names are approaching similar chart support levels.
On the other side of this trade I am lightening up my "insurance" (hedge) against commodities,
Ultrashort Basic Material (SMN) down from a near 5% stake to 4%.
Long all names mentioned in fund; long Mechel, Alpha Natural Resources in personal account
