THU 2/26: STLD – CALLING A FINAL SELL SIGNAL @ $192.67 +7.9%

3:35 PM – Once again, we have a textbook example of how the 10 DMA acts as both support and resistance. The 10 DMA closely tracked price higher and higher until shares broke below that line on 2/13. Since then, the 10 DMA has acted as firm resistance and is now beginning to roll over. Additionally, the 50 DMA is approaching from below, which could begin to exert additional downward pressure on shares.

SELL SIGNALS:
2/5 (1/3) @ $192.46 +7.8%
2/12 (1/3) @ $205.87 +15.3%
2/26 (1/3) @ $192.67 +7.9%

OVERALL P/L: +10.3%

ULTRA Trader’s Tip: Respect the 10 DMA Shift

  • The 10 DMA is the heartbeat of short-term momentum. When it shifts from support to resistance, character has changed.

  • A break below the 10 DMA followed by repeated failures at that line signals institutional selling, not random noise.

  • When the 50 DMA begins rising into overhead price, it can act as a gravity pull — especially after momentum has already rolled over.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

THU 2/12: STLD – CALLING A 2ND SELL SIGNAL @ $205.87 +15.3%

10:21 AM – Shares are showing early weakness this morning while also trading extended from the 10 DMA support. When price stretches too far from its defining short-term support, the probability of a pullback increases. Calling a 2ND SELL SIGNAL here and trimming another 1/3 to lock in additional gains.

SELL SIGNALS:
2/5 (1/3) @ $192.46 +7.8%
2/12 (1/3) @ $205.87 +15.3%

OVERALL P/L (ON SOLD SHARES): +11.6%

ULTRA Trader’s Tip: Trim Strength When Extension Builds

• The further price extends from the 10 DMA, the greater the snap-back risk.

• Trimming into strength protects gains while momentum remains favorable.

• Scaling out keeps emotion low and flexibility high.

• Strong trades are managed — not hoped on.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

THU 2/5: STLD – CALLING A 1ST SELL SIGNAL @ $192.46 +7.8%

3:58 PM – Shares posted above-average volume declines today. Calling a 1ST SELL SIGNAL here to book some profits.

SELL SIGNALS:
2/5 (1/3) @ $192.46 +7.8%

ULTRA Trader’s Tip: Early Distribution Matters

  • Above-average volume declines often mark the first warning.

  • Acting early preserves gains while momentum shifts.

  • Partial sells keep you involved without ignoring risk.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.