Well there you go. Downside as fast as the doomy forecasts appeared on markets over the last few weeks favouring shorters milking IO markets on limited doom scenarios can now set sail off into the sunset.
Why? In opinion:
1. The world hysteria of North Korea's missile launch is fizzing and so is the anniversary celebrations and unnecessary panic. Geopolitical tensions will taper off most likely. Summary: The world will not fall into apocalyptic nuclear war.
2. IO futures has had a WTF moment. After being smashed to the downside and clearly overdone investors will now base their investment on strong global demand fundamentals as IO remains in range.
3. Chinas IO stocks decrease once more.
4. China's infrastructure initiatives strong and property market robust.
5. Trump's Infrastructure initiative will no doubt ramp up.
6. Trump has mentioned the need to explore mining on the moon as the world's finite resources reduce. Commodity stocks in general will continue to be in demand as they are finite as population drives growth and urbanisation.
7. India ramping up growth and so is Africa and SEA. This will only create more demand for high quality imported IO.
We have already retraced IO and dropped to continue an upward LT range. It will now continue its leg up in trend as positive announcements roll through from AGO. Let's get on with strong IO fundamentals, AGOs soon to be debt free, solid profits and lithium potential.
AGO Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
