another bad day tomorrow, page-5

Could all this short term pain on our resources sector be due to the US slowing down/stopping its quantitative easing?

QE led to excess cash in US equities that created an over crowded market.

Therefore with Wallstreet investors holding all this surplus cash with no where to invest started looking for alternatives or more exotic solutions such as commodities or foreign mining companies.

Now that the money from QE has stabilized or stopped, the bull run also stops as there is no more money being poured into the markets.

Investors then pull out all their foreign investments in as oil futures and bhp. Leading to the ASX market falling.

If USD goes up tomorrow or tonight this would prove that this has happened, as investors convert Foreign Equities into US ccash, leading to a increase demand for the USD.

If they are bringing money back into the US then chances are we will also see AUD fall against the greenback over the next few trading sessions.

Thoughts?