Dead cat borence?

David Llewellyn-Smith

Thursday 2 August 2012

The bounce in iron ore looks weak. Rather like a dead cat. Here’s yesterday’s moves:

And the charts. No change to steel prices:

But 12m iron swaps reversed substantially:

Maybe a test of the low or straight through? The rally in China’s bulk shipping indexes is slowing too:

The rally could be more short lived than even I feared.

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.