most miners are down, page-8

It seems the market strategy is to short under-performing stocks, which leads to panic selling into sprial (to short is the make profit from a falling stock). The US market has the seen Naked short selling which is short selling the shares without first arranging a borrow. This has occurred mainly in the financial sectors but has somewhat followed though other sectors.

There are rumours that FMG might be a victim of this, from its high of $13 to it's current $8. In FMG's case the fundamentals have actually substantially improved, with shipments of large quantities of ore at record prices. FMS being FMG's little neighbour is effected by FMG's performance IMO.

It is a temporary event as it swings back quickly. The shorts eventually get squeezed out stocks are too cheap not to buy, the dividends alone make an excellent investment and the market swings back the other way. I have heard a lot say and I agree with myself, that there will be a bounce off 4800 and head back up. The US market has obliged with two days of consecutive rallies, however the ASX has not managed even one day.



Stay tuned...