Friends, looks like that tranquilizer has worn off after that...

Friends, looks like that tranquilizer has worn off after that nasty trampolining incident(those of you in the know will understand what im refering too).

A couple of points if i may:

1.) At the moment there are a myriad of quality stocks that are looking a lot more attractive and considerably more profitable than bhp(profit in terms of potential share price movement, not earnings).

The institutions know this and have been quietly taking up positions in property trusts, consumer stocks and financials, all of which have taken a considerable beating. (GPT is a prime example, Australias largest property trust which was trading at less than half of its book value, crazy stuff!!)

This transfer of capital away from the large defensive resources has been occuring ever since the first whisper of potential interest rate cuts.

2.)Robbbbb, sorry to hear about your loss, should listen to ol wxyz once in a while. But as you say, losses happen, its a part of trading, you learn from it and you move onto your next trade.

In regards to your request for my thoughts on a pullback price target and price action through to december, i think a move to the low thirties is not out of the question. If fear takes hold and there is a panic sell off id be buying with bhp with a 2 in front of it.

3.)Heres a bone for the chartists, check out the massive divergence in the weekly MACD between the $47 peak in Oct 2007 and the $50 peak in May 2008...very bearish indeed! Also look at the consecutive divergences in weekly RSI for the peaks at $39, $47 and $50...not good for the bulls.

Friends, whatever way you look at it, BHP is heading south!