Cleveland-Cliffs Inc. (CLF)
Cleveland-Cliffs, Inc. engages in the production and sale of iron ore pellets to integrated steel companies in North America and Australia. The company also engages in the management and operation of six North American iron ore mines located in Michigan, Minnesota, and eastern Canada. CLF is making new all time highs here, breaking out on almost double the average volume. Chart pattern wise it is forming a cup and a handle with a wide base cup, it looks like a very healthy consolidation. CLF is the largest producer of iron ore pellets in North America. CLF has a small float of only 35 million with a short ratio of 4.6 and 4.5 million shares short which comprises 11.3% of the float. This could be one factor for the strong move up as a short squeeze is developing taking out short stops coinciding with strong mining sector sentiment. CLF has earnings on Feb. 22. JP Morgan came out with positive comments on CLF on Jan. 23rd. Zack’s on the other hand believes that product pricing and customer concentration keeps CLF as a hold.

CLF usually moves with its biggest customer MT but lately has been diverging from this correlation. It seems steel and coal are fund favorites right now.