Euro now cracked again, Oil coming down, Gold should spike back
Tough day with plenty of selling across the board, tore up a small fortune today in paper profit but still holding.
XJO traded like USA with late sell off in stocks, Southern Cross also sends out a newswire saying to expect downgrades.
NEWSWIRE FYI Dow Jones
FY11 earnings estimates, says Southern Cross Equities Director Charlie Aitken. Points to "race for the exit" in tradable commodities, which means consensus FY11 earnings assumptions are based on commodity prices that appear "more and more unachievable by the day." Specifically, Aitken says pure play copper, zinc, aluminum and oil stocks are cum consensus downgrades, as their commodity prices are trading significantly below FY11 consensus assumptions, while pure play nickel, gold, platinum and palladium stocks are cum slight-to-moderate consensus upgrades, as those commodity prices remain below the current spot prices.
He favors BHP (BHP.AU), Rio Tinto (RIO.AU), Newcrest (NCM.AU), Woodside (WPL.AU), Paladin (PDN.AU), OZ Minerals (OZL.AU), Alumina (AWC.AU), Western Areas (WSA.AU). ([email protected])
Some other Guru is also calling for a crash in USA equities which was getting some airplay on cnbc. As can be seen sentiment can change in an instant.
Looking for a test of 121 on the Euro and for a big rush to gold.
As stated earlier, whilst some downgrades are coming due to tax and commodities prices, in the near term NCM should be upgraded given the POG AUD, which as you can see will be bouying NCM bottom line...especially this QTR
NCM Price at posting:
$32.60 Sentiment: Hold Disclosure: Held
