Yes, it was all good this morning with Super Mario’s funny money blinding the sharemarket to what’s happening in iron ore, with BHP, RIO and FMG soaring majestically into the firmament. But reality has struck this afternoon with Dalian iron ore futures rapidly unwinding gains for the big two (though still up). FMG meanwhile is down 5% to a new post-2009 low at $2.21, on its march back to $1.80 and restructuring. Here are the index charts:
The idiocy spreads are taking a breather today but the trends are clear:
The juniors are all down too, except ARI which may be benefiting from the Bluescope upgrade or the heavy buying by Allan Gray, which has the whiff of a plan about it. As I’ve said before, the only junior worth anything is ARI given its assets in steel:
