Big iron is taking it in the team again today as the iron ore panic spreads. BHP is down 5%, RIO is down 1% and FMG is down 6%.
The action in RIO is revealing, with very obvious bottom-picking holding up the price. Yesterday I chatted with a fundie and when the conversation turned to RIO I asked why he thought it was so outperforming the iron ore price. His answer was that his guys look at the fall in the price and say, “well, if it’s fallen that far, it must be about to turn”. Jaw-dropping but there you have it.
To the indexes:
