Methinks its the autotrading systems or autobots as they are called.
Remember that "the tribe" has spoken and decided if theres another t/o in the mid-tier Nickel producers it wont be MCR, but be MRE,SMY,WSA or IGO instead.Thats the only reason they are all going the other way to MCR, as its people now speculating which horse to get on to. MCR is highly leveraged to the PON, as its been gyrating in the us$14/lb and the aussie getting stronger, MCR will inevitably falter if theres no interest or decline if punters think PON is going to fall. 3 things in our favour being 1/the inevitable breakout from a Ni pureplay (watch Tottenham copper for this) 2/my fcast the a$ will go the other way next year 3/the decline in Ni stocks after December through to June-July'08 (being the traditional cycle) (and yes I know theres more Ni coming with new prodn but I dont think it will meet continuing growth and the destocking thats happened) 4/PON will go up to somewhere around us$17/lb in that period is just my opinion 5/ the continuing drive to sector consolidation will only benefit MCR because if it aint them taken out, there will be one less quality Ni producer that they have to compete with for investment funds etc. Oops thats 5 things. Just my speculation folks, and I am very happy to hear dissenting views...any takers?????
MCR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held