Resource shares

[Russ]

This rally is almost beyond belief. The question is, is it just a relief rally with short covering, or is it the start of a new bull market in resources? Any thoughts?

[prancing_horse]

Guys in shorts definitely getting sunburnt today!! Crazy market, if only one could read it.

[SimonPB]

there is no way of knowing if it a bottom or not until after the event, some time after .. a trader just focus on price

[kwagga]

This is a relief rally. Bull market in resources ?? - Based on what exactly ? Resources have been oversold for way too long. This is catch up, that's all. ALSI is in a bear market, so be careful what you buy and when you buy it. Day's like today is good for taking profit, nothing more.

[Russ]

Sure, but there must come a time when all the bad news is priced in and just a sniff of good news sends the shares up (like maybe no more rate cuts in USA this year). After that momentum does the rest!

[Russ]

rate hikes.

[Rams]

This market has not really sold off nearly as enough for me, i am still waiting for shares like MRP and LHC to bulk up my long term portfolio...

[Hali]

Fundamentals in resources remain weak..all the commodity counters remain heavily oversupplied.. A sustainable rally will only come about after we have supply coming offline to balance the demand-supply ratios.. Most of the commodity companies are still pumping like theres no tomorrow. I reckon we need a few big players to close shop in each type of commodity before we see a recovery in prices.. I think if LON was allowed to fold plats would be 1000USD by now..

[Hali]

Easier said then done.. If you on the wrong side of this thing you can get destroyed..

[kwagga]

RAM's Serious breath problem on the ALSI. If shares like SAB, BTI and NPN starts correcting, then the floodgates will open.

[Russ]

But Kwagga, those are industrials. Will they necessarily bring the resources down with them? For a long time resources were in a bear market while the rest of the market was going up. Maybe it will be the opposite now?

[Rams]

there is no evidence that this is the resource bottom...but we all have that bias if we own stocks exposed to resource , more so oil.

[SimonPB]

then you stop out, but agreed this volatility is hardly tradable and in part why I don't trade equities ..

[SimonPB]

an plat at 1000USD leaves the remaining players still under water ..

[Hali]

Agreed, but less underwater than currently..The way I see it by saving LON we have now killed IMP AMS and LON..

[Hali]

This is a bounce..not a new bull market for resources..Its a nice opportunity to short them

[THRESHOLD]

The shares always move well in advance - by the time earnings are "obvious" - the rally will already be well underway.

[Preston]

Hali, please short only "KIO".

[THRESHOLD]

Anglo American fell 94%. It was trading at 5p on the Pound. Not a bad little crash...

[THRESHOLD]

Anglo American fell 94%. It was trading at 5p on the Pound. Not a bad little crash...