see saw, page-15

Hi Robert,

Have Bookmarked your Blog!
Looks like a very interesting site.

The market is Jittery. BHP is jittery. Just have a look at what happened today after lastnights unexpected rise on the DOW 128pts. Considering BLT in London was down over 5% at one stage lastnight it was a no brainer that BHP in NewYork would be down. Well, it was for most of the night until sheer exuberance by the DOW pulled it over the line. I had one thing on my mind when I woke up this morning and to my amazement saw BHP in the black and the DOW up 128pts. Sell my BHPVOF's quickly this morning as I might not get another chance. OK I did at a small profit. Just to show how jittery the market is. When BHP went into Pre-open on the news that they would be increasing their iron-ore output in WA by 20Mill/tns a year in 2007. Instead of a market reaction, the price stagnated. HO! HUM! Nothing special. Yet it was regarded as a price sensitive announcement.

Had it been 2 mths ago the market would have reacted favourably and probably would have moved up 50cents or more.

What does this tell me?

If the announcement does not immediately effect the bottom line forget it. BHP in particular shows a lot of panic buying and selling throughout its course of trades during the day. The volatility of the BHP shareprice is a reflection of the lack of confidence and direction in the overall global market. In particular, the US. Greenspan has got to pull a rabbit out of the hat.

I am a firm believer that BHP has an enormous longterm cycle of upturn. However, with the amount of recent volatility, the best position to take is in the warrants.

GET IN & GET OUT!

Cheers
markco2