Yesterday’s weak morning in iron ore equities was promptly followed by a surge of exuberance throughout the afternoon, erasing morning losses and closing iron ore equities up 1% for the most part. That idiocy trade has hit a wall again this morning, however, as Chinese markets gapped lower at the open with Dalian iron ore futures down 8 points to a new low at 581 and rebar futures poll-axed 2% to 2748.
It must be said that the idiocy trade remains in control, with FMG down only 3% so far and the majors down 1% a piece, with no new lows yet. Here are the relative performance charts, for the juniors which are still patiently waiting to be acquired by Elvis (right after he marries Marilyn):
And the majors:
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