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Major iron ore equities are still levitating as the spot price falls to new lows:
Both FMG and RIO are off their recent lows by 5% plus, even as the iron ore price reached a new low yesterday. Perhaps they’re still looking “across the valley” to stimulus or a restock or a unicorn.
Not so the iron ore juniors and Atlas Iron looks like the weight of the earth is crushing it. Today it will likely break a terminal five year support line at 75 cents:
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The Pilbara carnage has begun.
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.
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