Big iron is up and away despite clearly negative Chinese PMIs. Bad news is good news, I guess, though Dalian took a -2% hit. Even so BHP is screaming with laughter as it surges 3%, RIO 2.2% and nobody can touch FMG up 4.3%:
FMG is clearly breaking out of its bullish ascending triangle:
When a security can so roundly ignore the turn south in its fundamentals it is either a wildly bullish or wildly bearish signal. Given the H2 softening and the unlikelihood of further stimulus that benefits building (at this point at least) I’d suggest the latter with the best way to play this medium term puts that get exposure through the seasonal weakness of Q4 (though that is not advice!!!).
Big gas is also ignoring its underlying commodity with WPL up 0.2%, OSH 3%, STO 0.8% and ORG flat:
Gold miners are rocketing up but they have the excuse of gold being heavily bid in Asia. NCM is 3.2%, RRL 2.7%, IGO 3%, SBM 7% and EVN 8%:
Banks are sickening mildly with CBA -0.2%, WBC -0.2%, ANZ flat, NAB -0.3%, BOQ -1%, BEN 1.7% and MQG -0.2%:
McGrath is still hovering at its lows. Break damn it!