Big iron, gas roar on Fed

God save the bears! Or, more accurately Fed save the bulls! BHP is roaring today up 4%, RIO 3.4% and FMG 7.4%:

The bear market rally suddenly looks alive and well. And yes, I still see as just that but I will acknowledge that iron ore is looking much more financialised today than I have ever seen it before as Dalian also rocks higher 2.5%. This does not change ultimate price discovery but it does mean that we’re going to see higher volatility, with bigger spikes and crashes. So this runs as far as it must and then it will flame out and crash horribly. I’m sure that will enhance Treasury forecasting.

Over to LNG and the bull is loose in oil as well though it has not yet broken to new highs. WPL is up 2.5%, OSH 3.8%, ORG 4%, STO 5%. None is at a new high but certainly threatening:

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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.