Think I caught the closing ceremony for paralympics on news last...

Think I caught the closing ceremony for paralympics on news last night - or was I drunk again lol

No doubt China used the last few months to fidle and fuddle with base metal prices one way or the other - even squirrleing stockpiles away and longing and shorting contracts or whatever was needed to bring prices down - wouldnt you do it if you were them -

Ever seeking opportunities (parasitic)hedgie funds etc no doubt shorted metals during the same period knowing nrth america was on holiday and china on go slow and no doubt took advantage of this period to tell everyone the resource boom is over - saying it has to be ...just look at the metal prices - once a bit of anxiety is generated they then start shorting the miners - FMG case in point - (by the way I have emailed my super fund to ask do they loan out stock for shorting - guess what - no reply)

Of course we are also going thru a major market mess which may or may bot be over. Reckon would be over much sooner if short selling was banned permanently - Look at MQG - did it suddenly fix all its probs over night - not sayin it has probs nor do I care (and this isnt the place to argue it either) but of course they didnt fix anything so why were they worth as little as 26 dollars yesterday and up to 39 today - coz the big end of town were shorting her yesterday tll mums and dads couldnt take any more and sold out and today they stopped shorting her- leaches

Not saying the probs in US are over - will take time - but am saying exactly the same as the smacking the hedgies etc gave the finace market they have been doing to resources and miners etc

The difference in my mind is they can hit the finance stocks every few months/weeks AND THEY HAVE BEEN let them recover until another problems arises then they move in and rip the hell out of it again.

My gut feeling is that once China reboots - there will be less opportunity for them to attack the resouce sector - as hard as they have over the last six months or so - they will no doubt have a go at it and will find reasons and signals data that they can build a story out of but imho - nothing like the last some months.

My suspicion is the resource sector should start recovering any time now. It may take a while to pull stockpiles down at LME etc - Not yet convinced we will see "new highs'" in metal prices for a while yet - but I expect them to return and stay closer to what they were several months ago rather than the lows of last few months. Like copper 3.50 - 4 bucks rather than the recent 3 - 3.50 but wouldnt be suroise to see a short lived pull back below $3 before that all kicks off again.

For my thinking - some finance stocks may be a short term buy but while short selling remains legal - once they recover.......... the hedgies will hit them again the second the US give them the excuse, and that will probably be within a few weeks then once they are down they will buy them back and so it will go on until it is fixed

Whereas resource stocks are probably a buy now while at there lows - Think I read somewhere that before china went on holiday there is usually just 4 days supply of copper in the warehouses - they have been on holidays for months now so of course the stock piles have built up but they are about to be drawn down on again.

Until that starts the traders will have to be happy with 5 or 10c moves but once warehouses start getting drawn down, prices head northward and CMR starts shipping metals the rest of us will be eyeing that med crusiser again (Although since I had to dump stock at a loss I will have to limit myself to eyeing off a new tinnie for a while I think - bloody leverage - will learn one day)