usdx for damocles, page-13

Dont get me wrong guys ....... no change to my CMR time / price targets looking beyond into clear blue skies .... only question I have now is how low can we go ahead of that so I can load up with more.

Right now all things considered, we are in the neutral zone and over-sold and over-shorted based normal market conditions. But this has the poss of not being a normal market ahead cos there's lots of forced disclosures coming up over next few weeks based all this derivatives crap. I have just done what a prudent olympian would do and slashed the rest so can hold the best, the Jungle King. Im at 40% cash and mostly CMR the rest cos I hold firm to my L/T call ....
the Grand Ark to take us safely thru any storm, perfect or not.

We are trim and taught and full of storm buffers with lemming nets all over in case some of our shipmates are forced to bale based external factors. I have just placed myself in a possie to double my holding if the opportunity presents ...... keeping in mind we have 2 US hedge funds on our register holding a big swag and whose financial state we wont really know until they have to disclose with the rest ....... post Sep 30 ?

Whatever happens next few months I have no probs with the thought our supermarket value aint going down from spot AUD cos our RBA will ensure IMO the ongoing good health of our mining industry and its relation with Chinese evolution to which we are so closely tied , even if they too suffer some short term shocks based whatever US fallout.

I have just positioned myself conservatively to ride out whatever short-term pain looking for the consequent OPPORTUNITIES to leverage up to the longer term spoils.

It may well be that we have seen the techno-low already set at the third marker buoy and now drifting up toward the pivotal fourth to reasses whether we move onto the fifth at this stage. Production start in calm albeit nervous seas should hopefully even take us toward Shaws' call. On the other hand a sudden shock stormwave could temporarily take us off course to a new low where I would be waiting in ambush. U know what good ol' Pirra would be saying on this haha. Flexibility is my focus so can instantly move with whatever the market dictates from here.

Reality check on spot prices relevant to us :

Price: US$/lb

Copper August
Bid/Ask 3.4012 - 3.4103
Change +0.0628 +1.88%

Nickel August
Bid/Ask 12.4556 - 12.5917
Change -0.1504 -1.19%

Zinc August 24,13:33
Bid/Ask 1.4297 - 1.4433
Change -0.0024 -0.17%

Lead August 24,13:33
Bid/Ask 1.4949 - 1.5085
Change +0.0435 +2.99%

Uranium Aug 20, 2007
Ux U308 price: 90.00
Change from
previous week -15.00

London Metal Exchange Warehouse Stocks
( August 24 )
Metal Tonnes in Storage Change from
previous day
Aluminum 831825 +175
Copper 125550 +1750
Nickel 21126 +48
Lead 26025 -375
Zinc 63325 -225

NOTHING wrong with these bros at spot AUD 0.82.

LEAD ahead of Zinc? When was the last time we saw that? Browns sulphides is primarily a major global LEAD producer ahead ... #3 we are told.

Copper, Nickel, Zinc all will go higher ahead IMO. GORM theory aims for the resources megabull based stimulatory paper burn beyond any debt-default induced asset deflation mid term.

Uranium is in its first primary retrace after a BIG "A" wave spanning USD 130 bucks ...... nothing has changed re the fundamentals supply squeeze evolving thru to 2013, its all technos and prob back to 50% retrace 75 level ...... but whats the "C" upwave gonna look like praise Zeus? Glory days ahead bros as we ready ourselves to produce prob 3 mill lbs pa into it based Browns East likely higher grades to boost the average feed grades. That would put us at # 3 in Oz behind our peers BHP and ERA IMO.

A 2% fall in US GDP would prob translate to an 8% GDP rate in China ...... they will still want our resources at a growing demand rate even in a global slowdown!
And then theres Indai we have never really considered in the equation.

So emphasize again, my caution is based on short-term external factors which may allow me to increase core holding. I hope there are no internal delays to add to possible external factors and we really need a status update on many fronts ....... and for this gotta say, there certainly could be improvement to something more appropriate to our ASX standing, which btw must NOT be jeopardised under any circumstances (doubt there will be any cloning til after the storm passes and we move to fair value again, this time earnings driven).

Meanwhile, USDX tooka knock last nite (USD 80.65 -0.47) and precariously sits at the precipice (79.7 IMO) so dont get market - complacent ...... storm warnings all over whilst the PPT is creating lotsa smoke and mirrors. Longer term this means money for jam for us, but short term might well cause plenty of distress selling all round.

Live long and prosper so we can party on brothers. Sometimes u gotta retreat to higher defensive ground before launching the next attack. Its gonna be a long war and we need lotsa ammo reserves to win it.

Off to Death Valley today for a minor diversion. Gotta hone those skills again in case needed ahead haha.

IMBOOC