what has changed

I sit back & ask myself what has changed to try and explain the price action.

From a Fundamental Perspective (Macro)
- There are some concerns about Chinese domestic issues re: Credit issues / Shadow Banking Sector
- IO Spot price still very healthy in both USD & AUD
- Some small concern about Chinese Rebar pricing which can be used as a forward indicator for IO demand

Fundamental Perspective (Micro)
- The company is going to be printing money & this will be evident 29 Jan when we see the quarterly

In Summary there is nothing new which would cause a major price reaction (15%) that we've seen over the last 2 sessions, couple this with the fact that the entire IO sector has been hit - i.e. its not AGO specific - I come to the conclusion that a major player (Insto Investor) has changed their view on their portfolio of IO stock holdings.

This would explain the sharp SP moves (given we are in a period of historical low volumes) and also explains why less than 30% of yesterday's volume were new short positions.

I hold & continue to hold - I feel this will be a short term blip...

IMO - Screaming Buy