BHP, RIO, FMG struggle despite futures

It seems the ASX has got the message at last that buying the dips ain’t such a great idea in the iron ore space. BHP and RIO are barely up today and FMG is down a solid 2.3% despite the big bounces in spot and futures. To the indexes:

The idiocy spreads of RIO and BHP are widening but the sanity spread of FMG is at its widest in two years:

FMG weakness has no obvious cause (other than long term bankruptcy) so perhaps the sanity spread is suggesting a very short term buy. Who knows?

Juniors are as dead as door nails with ARI still flailing at record lows:

Atlas has its rescuicide vote today so may make a return to the chart soon.

Dalian is still hovering at 439, down 1 from overnight action.

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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.