baltic dry is low therefore demand is lowing

The problem for all the resources with the exception of aby excellent result are being imacted by reduced demand. The baltic dry has been on free fall for the last few weeks but is stablising. The only thing holding up rio and bhp sp is sentiment. Once the fear factor starts to take hold these shares will drop. The conseq falls in heng seng lately has also demo that all is not right in china. Money is tightening and the chinese stim is starting to wain. The market is showing signs of a correction. BHP 42 maybe, but bulls can easily turn into bears in a few days. I think resources are going to have a drop spell till demand increases and chinese start throwing money in the air and commence shooting it again. They have enough stock piles to last a few months (they would be happy to sit and wait till commod prices cheapen - good economics for them). We have a few more weeks of joy but it will quickly turn into disappointment. Baltic dry tells the story of resources. Qbe / Anz is undervalued will be on a positive run as it is the last of the cheap financals. BHP maybe low 30 + Rio low 45 even lower by Nov. Its only a matter of time.