Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of iron ore producer Cliffs Natural Resources (NYSE:CLF) fell 10% today after reporting earnings.

So what: Sales fell a whopping 30% to $1.45 billion and net income dropped 86% to $85.1 million, or $0.59 per share. Profits from continuing operations were $0.61, which was half of what analysts estimated.  

Now what: There's really nothing good to report here. The price of seaborne iron ore fell 36% in the quarter and outlook for the spot price of iron ore was reduced by 12%. Cliffs may look cheap, trading at four times trailing earnings, but these results are quickly headed in the wrong direction and investors could be headed for a trap. I'm staying away from this potential landmine and searching for more stable choices in the market today.

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