weak, page-17

I think BHP finished >3% down on the DOW on friday night.

Both the daily and monthly stoch is way over bought, the weekly not so. The gap up and candle on friday actually look very bearish.

Remember that even though the the stock is in an uptrend 12.59 will act as sig. resistance to any further move up. Selling 12.50 calls is probably a very intelligent thing to do.

The XJO is also in overbought territory and there will be selling pressure from all direction in the coming week. Resources, because of there high stoch and overvalue, will be hard hit IMHO.


The $US dollar has dropped sig. on friday but noone is under the delusion that this is the start of a resurgence. The dollar is being devalued to help stimulate the US economy and export their current account deficit oveseas. This will only disable the resource companies profit. The dollar will probably continue to be devalued inthe future.

China will continue to grow +++ and it need the raw material. Hence the improvement in BHPs profit. But RIO on the other hand didn't beat expectations. WHY?

I'm short on RIO as of thursday. Only because of the above mentioned points. RIO is a beast and can move quickly and erratically. I think RIO is in a medium term down trend and i am selling the peaks. Do your own research. Its much easier to lose all your money then to earn a lliving trading shares. Especailly options!!

kman