bhp getting hammered , page-26

For me, there's an interplay between mental, technical and fundamental factors.

At the moment, mental factors / sentiment etc dominate. This is why I think as more bad news comes out we'll see more declines.

Fundamentals though put a floor under things at some point. A junior with a need to raise capital at the moment may well see a SP trade all the way down to 0. Someone like BHP has very little chance of trading to nothing. When BHP starts hitting silly p/e ratios then the plummet likely slows (although the E in the p/e is the critical question mark). So although I think it's wise to trade sentiment at the mo, there's still a faint trace of fundamentals affecting the range to which sentiment impacts. So, SP is influenced by variables M T and F - and the relative signal strength of those three variables fluctuates.

I too, as I've said, am trading sentiment at the moment simply because for now it's the noisiest signal.