If it digs, buy it! That’s the sentiment today as what was a sagging ASX is now afire with commodity price hope once more. BHP is rocking upwards 4.7%, RIO 4.3% and FMG 4.9% as Dalian piles on another six points today:
None is yet above previous highs and all are far from being out of bear markets but FMG and RIO might there, though to me this kind exuberance marks tops not bottoms.
Big gas is also rolling with WPL 4.6%, OSH 1.2%, STO 3.7%, ORG 4% and LNG 8.5%:
In truth, however, the LNG stocks continue to under-perform oil with only STO threatening new highs with a bullish ascending triangle pattern:
Banks are pushing away from the CBA precipice again with the offender up 1.4%, WBC 2.1%, NAB 2.3%, ANZ 1.7%, BOQ 2.1%, SUN 1.7%, BEN 1.1% and MQG 1.9%:
I still don’t buy it. Oil may have bottomed but needs more correction to balance the market as shale will resume if we get past $50. Iron ore is still years from its bottom. She’s a tradable rally not a change in trend.
The ASX is by and large behaving in agreement with such.
