Bear market rally presents smorgasbord of shorts

We’re in full melt-up today with everything flying on the back of the OPEC non-deal. Banks are up firmly as CDS prices come off (CBA 130bps this morning) and the looming rate cuts aren’t hurting, either, as ABS numberwang goes into reverse. CBA is up 1.6%, WBC 1.7%, NAB 1.8%, ANZ 1.4% and the mid-tiers have BOQ 2%, SUN -1.3% and BEN 2.6%:

Big iron is screaming higher with BHP up 6%, RIO 2.8% and FMG 8% on its chart breakout:

Dalian is flat.

Big gas is actually rather muted with WPL up a lousy 2.6%, OSH 2.9%, ORG 3.3% after its profit shocker, STO 4.2% and LNG a more respectable 7.2%:

If I traded, and I don’t, I be building my shorts on all of it. Iron ore and regional banks and in particular look good.

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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.