todays trading, page-15

Everyone seems to be bloody short some stock or contract or the other now days - seems to make for untidy reversals.

We've had so many false starts that just turn out to be short covering rallies on a whiff of news or suspicion - they last just a short time untill it is realised there is no fundamental reason to rush so they reshort again - seen it many times last few months havnt we hey.

Hopefully some fundamental changes occurring now. China increased imports by 15% - Now that on its own is not going to see stockpiles reduce in a few days but will prompt a short covering rally - but it is as I see it a fundamental change. The stock piles built up over the lead up to and during the olympics must be starting to run down by now. China moving with a big stimulus package because the governement know they only remain in charge while the people are content enough - must avoid civil unrest and revolution.

Add to that what you say about time t0 buy up while prices are down - and for mine we have the start of a reversal -

Short covering rally - then all that is needed is enough real stuff to make the shorters a bit too scared to short the contracts then fundamentals can start to take over again. Few ups and downs till that happens but I suspect we are looking at a reversal in the making - even if it is untidy