We’re selling out at a modest profit from Steel Dynamics (STLD) this morning.
The environmentally friendlier steelmaker closed below our stop-loss of around 66 Wednesday. As we noted in yesterday’s regular update, we would sell if the close broke that mark. Technically, STLD isn’t in bad shape – support at the 40-day moving average held yesterday. But charts suggest if that support is broken we could quickly move toward our buy price, or a loss. It also acknowledges that follow-through on the mid-August breakout faltered. We’d rather exit with a modest profit here given the mixed signals from the sector and broader market right now.
If shares open at yesterday’s close, we should book about an 8% profit on the position, based on the portfolio buy price of 61.13.
Our next issue of SX Greentech Advisor is out next Wednesday, September 15.
Please let me know if you have any questions or comments. You can reach me at brendan@cabot.net