The big iron dead cat bounce continues today with BHP up another 3.3%, RIO 1.8% and FMG is flat:
Dalian is falling today down two points. With China closed next week it is anybody’s guess where iron ore goes from here but mine, if you want it, is that the week after will resume weak. It is my view that this week’s squeeze has been engineered in an illiquid market pre-CNY.
Big gas, meanwhile, is falling again with WPL down -2.2%, OSH up 0.6%, STO -3%, ORG -1.5% and LNG up 1.5%:
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Oil also appears to be tiring.
Having said that, a weak NFP tonight and decent Chinese foreign reserves on Sunday, and we’ll be off to the races again.