Iron ore short squeeze screams higher

Friday, 24 April 2015

We’ve got ourselves a fair dinkum short squeeze going now in iron ore. Given how hot futures markets have turned, BHP and RIO are lagging a little at 2.5% rises. FMG is hotter at 5.3%. To the indexes:

After a few brief days of closing, the idiocy spreads are off the races again:

A measure of the mania is the surge in juniors as well with MGX up 20% in two days and BCI rapidly approaching a 48 hour doubling:

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

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.