Dirt and gas ride dead cat higher

Iron and gas are riding the dead cat higher today as terrible profit results offer a chance to Australia’s army of twenty something drunken fundies to do the opposite together. BHP and RIO are both up 1% but FMG is down 2% as hopes of its deal fade. In junior land ARI announced a -$1.9 billion shocker and MGX was every bit as bad at -$911 million, both with huge write downs, a glimpse of the futures for the majors:

Dalian is offering small support up two points from this morning at 376.

In gas it is going to script with my mooted bounce on terrible profits materialising in WPL’s -40% result and cut to its dividend to boot only to see its share price jump 2%. ORG (up 4.5%), STO (up 2.2%) and OSH (up 1.2%) didn’t need a second hint:

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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.