Since my last trading update, I have made only 1 trade – shorting Fortescue. Below is a screenshot of the trade.
I shorted 170,500 shares worth about $3.1M last Friday, at 18.67 average price. I closed the trade today from about 17.70 to 17.90. The profit shown here is $154k, but no, I did not make $154k. The stock went ex-div today and the dividend amount was subtracted from my account. Accounting for that and subsequent price movement, I actually lost about $5k from the trade.
I entered the trade based on negative stock sentiment and industry news flow. I exited today because there is a small supply shock due to a disruption in iron ore supply. This disruption would support prices.
Strong bullish and bearish forces are both present right now. Consequently, it is difficult to pin down stock price behavior and customize trading strategies for it. Further close monitoring is warranted before making more big bets.