BHP, when the announcement was released on Monday morning regarding the reduced iron ore costs, etc. I thought that it was sure to rip. Hence, I was surprised to see BHP sold down first thing on Monday morning. Hence, I thought that the market has got it wrong and is probably just fretting over ebola, terrorists, or something. Hence, given the fact that the BHP chart is very oversold anyway I decided Monday morning's low open was a buying opportunity so I bought at 3283, but ended up in the red for the day. Fortunately London and New York saw the positive side of BHP's news, which resulted in a reasonable bounce back today to end green.
FMG, with FMG quite oversold and iron ore flat lately, my strategy was to buy one tranche on Monday morning, then average down if FMG took a further dive. The sp dived somewhat after my buy on Monday, but recovered nicely today with a 4.24% gain. The FMG sp didn't get low enough for me to buy the second tranche.
RIO, my original strategy with RIO was the same as for FMG, but with a bigger $ volume as I perceive RIO to be less risky. The Glencore news this morning is a big bonus. Consequently, following my long trade open at 5810 on Monday, this trade is very green as some luck has drifted my way. The punters on the RIO threads are going crazy with some calling $85 to $100 fair value for a Glencore takeover of RIO.
CBA, I only bought CBA to balance out the above 3 mining long trades. My theory was that CBA is in a long term uptrend, but has pulled back a little lately with both the XJO and AUD down. Hence, I thought that after the SPX had a good night on Friday night, both the XJO and CBA would bounce back. However, I obviously got this one wrong as my CBA long trade was stopped out for a small loss this morning.
