agree it looks oversold, but there are 2 concerns in the market...

agree it looks oversold, but there are 2 concerns in the market keeping buyers away.

US jobs tonight. If this comes in very strong then there are feras the FED will not only raise rates next week (which they will do anyway), but they will also imply 3 rises this year - that is bad for equities and basic materials.

softness in oil and IO, copper, Nickel. BHP has higher exposure to oil prices than RIO, so Wednesdays 5% drop below US$50 has scared the market. Failure to bounce significantly (yet) is adding to concerns. This is a sentiment issue, more than a fundamentals issue.

My opinion is that markets will remain skittish until the FED raises, and then we will realise the world didn't end and the buyers come back with conviction. If jobs are not 'too' strong tonight we could see a bounce in US markets as well.

I am accumulating both BHP & RIO here and feel confident in doing so.

RIO has now fallen 13% (dividend adjusted) from its highs in 3 weeks, and BHP 15%. Commodities are still well priced and China PPI, US infrastructure etc support a solid 2017. Also, target prices from major analysts across the board are climbing in recent weeks, showing no concerns from those in the know.