‘Draghi put’ floats miners as iron ore sinks (updated)

Friday, 23 January 2015

Is Mario Draghi a Chinese property developer? No? So why are Australian mining stocks off to the races today? The reason is that markets constantly mis-price and hence offer endless second chances to enter trades, in this case short, as iron ore goes one way, and major miners the other. BHP is up 2%, RIO up 1.4%, and FMG is up 2.3%. Here are the indexes:

The idiocy spreads are superbly named today as they widen:

But juniors are taking it firmly in the team as ARI nicely demonstrated their imminent futures:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.