Bubble Stock Behavior: CLF Is A Poster Child Today

Today we have a great example of a bubble stock behavior in CLF. Main indexes are down 1.5% and this stock after being down 3%+ is actually up slightly despite the market not improving in a meaningful way. There are no company specific news to support this move. There is no sector specific news either. Rest of related stocks are all down. Economy is terrible. The news today were horrendous. As a cyclical stock, this stock should be down 10%.

So, this here is pure bubble behavior and as the stock went from $115 to $15 last year, it will go from the current $55 level in a very meaningful way (50%+). Best way to play this is via puts.