at what price would you buy at, page-32

from fnarena...

Not too positive on resource stocks.

"Now, all of a sudden, the US dollar seems to have started a bounce back. It'll likely prove temporary, but it is also likely that in the current market context this will act as a trigger for overall re-adjustments. The fact this happens at a time when speculators and investors are forced to sell assets because investment banks worldwide are reducing risks and exposure and calling in their loans is acting as a quadruple blow to the sector. The speed with which this process is taking place is simply mind boggling and certainly unprecedented, even for the always volatile resources sector.

Only a week ago shares of BHP Billiton ((BHP)) were testing resistance at $40. They are now likely to test $32 anytime soon. And BHP Billiton is only one example, and far from the worst in a sector that is feeling selling pressure coming from all corners at the moment. Global deleveraging is clearly going to hurt commodities the most, as this has been the prime destination for leveraged investments thus far. For investors who have been loyal to their shares in resources companies throughout this year's market turmoil, the taste will be rather bitter as problems inside the global finance sector have weighed upon share market performances overall and in this process share prices of resources companies have failed to keep pace with the performance of their key products. But now that prices for precious metals and commodities, both hard and soft, and including energy, are correcting lower share prices for the likes of BHP Billiton, Rio Tinto ((RIO)), Newcrest Mining ((NCM)) and Woodside Petroleum ((WPL)) seem to have only one way to go: south.

Don't expect this to end anytime soon either, experienced market watchers are talking about "possibly several weeks