Following from on Tesa I would to point out the following in...

Following from on Tesa I would to point out the following in terms of volumes done by brokers since the 6th of October and the main reason (in my opinion) for the market getting slammed and MGX in particular.

In the last 4 ½ months we have seen the biggest ever concentration of US mutual fund selling where they have sold 150bn+ & also combined in the last month with huge hedge fund selling as well (combination of huge liquidation & de-leveraging from 8x to 3x).

Redemptions from US mutual funds this year are at all time highs
Oct -66.8bn
Sept -43.5bn
Aug -9.1bn
July -26.40bn
June -4.8bn

Since the 6th of October (not including the last 3 trading days) the following brokers have bought and sold the following in percentage terms in MGX:

Commsec: Bought 9.51 Sold 10.01
Macquarie: Bought 11.92 Sold 11.49
Citi: Bought 2.95 Sold 11.58
UBS: Bought 4.29 Sold 9.25
Etrade: Bought 7.33 Sold 4.88
Merrills: Bought 5.34 Sold 5.50
GSJBWere: Bought 5.41 Sold 3.86
JP Morgan: Bought 2.95 Sold 3.35
Deutsche: Bought 4.32 Sold 2.73
Bell Potter: Bought 4.83 Sold 1.46
State one Stock: Bought 2.84 Sold 2.91
Credit Suisse: Bought 1.87 Sold 0.33

Draw your own conclusions from this but Comsuk, bandaid & Bells are retail so no surprises in terms of the buys and sells netting out and being of significant size.

What is incredible is that the selling seems to be emanating from Citi and UBS. You might want to conclude from that they may well represent these mutual funds in the US.

Also note that short selling is not permitted at the moment and only those with very large holding would be able to push the market down as they look to liquidate their holdings due to redemptions.

Compounded to this is that China is playing mind games with us all in terms of their demand for IO and resources in general. Nothing has changed over there, they are still building roads, railways, cities etc. However what has changed is that they are now in the driving seat so expect them to make noises about slowing demand etc. and create extra panic in what is already a dreadful global slow down so that they can THEN negotatiate better prices.

It reminds me a bit of poker - bluff away

DYOR