BIGRODDYThat $40 is a big number.Remember the $8 rule.$48, $40,...

BIGRODDY

That $40 is a big number.

Remember the $8 rule.

$48, $40, $32 (yeh it hit $31).

If the market can hold the lows then you may be safe, but if there is more to come I suspect it will be the BHP's that are next to cop it.

I know it is counter intuitive with increases in ore prices etc. but just as a rising tide lifts all boats, the reverse applies and the Chinese indexes are looking the worst of all IMO.

The Shenzen exchange now has a triple bottom and is doing a very good imitation of 10 years ago when the market lost about 80%.

I do think resources will be the next dot.com but probably not until a couple of years leading into mid 2013, just so long as this isn't 1974 again, and there are some amazing similarities.

I believe $24 for BHP is not out of the question purely from a TA point of view.

At best I can't see a serious advance for BHP before Otoberish.

I hope for all our sakes I am wrong.

I think the recovery story for this year will be the beaten down stocks like financials which does not mean they can't decline next year or much longer.