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4/8/08

Nailed PCU

To recap:

1) sold a little Friday
2) sold more yesterday at $120+, leaving just the LT core position
3) Reasoning for both sales was that although PCU rocks as a company, copper has reached $4 again and would likely fall, pulling down Southern with it (and the other copper plays, most likely, but I tend to stick with PCU....to each his own, no?)

The above is documented in previous posts here, of course. So PCU wilted yesterday to finish at $116 or so, and overnight copper did this:
It's now not a case of whether PCU goes lower, but how low it will go. I'll try to short a small chunk at the bell. The general target is $105 buyback, but a lot depends on market conditions going forward. That target is NOT set in stone. Have a good day.

UPDATE: Waited an hour and shorted a smallish chunk at 116.5

UPDATING THE UPDATE: I've covered at a loss. Copper has done what I thought it would so far, but a larger story is making the airwaves now. In Chile, the Codelco non-contracted workers look close to going on strike. I'm trying to find an English version of the story to peg up here, but for now will leave you with a link to my post on this subject from a few days ago.

As for the trade...no serious damage. It does me good as a reminder not to get too cute with the market. I'm better at long term positions, and trading isn't my forte (though it is fun, and i like to dabble with a small % of the port).

Here's one story that links to the proposed Codelco strike, but it's from the Guardian and doesn't really explain it well.