bought my first fortescue load today, page-81

Yep got done like a dinner. Sold my 5k aof 7.30's and 10k of 4.50's at 3.965 soon after open. Ouch.

I thought the DOW would bounce last night - it didn't so I'm out and have learnt another harsh lesson in the market.

Realistically the world market is fully supplied with iron ore with a massive increase in supply occurring with RIO, BHP, AGO and FMG all increasing their supply.

Europe and North America are stuffed with some states in the US, including California close to bankrupcy. THe infrastructure spending is going to have to stop. Banks are going to be reluctant to loan money so building of houses is going to decrease. China is going to be significantly affected by this as well.

All means a massive decrease in a need for iron ore.
Could be a fair bit of undercutting happening when the price negotiations occur next year. The Yanks are also short of money so they, IMO will continue to close their positions in the stockmarkets worldwide to increase their cash position.

I bought as a trade - it didn't bounce as I was hoping so I'm out. Good luck to the current holders