Commodities Collapse, but Equities Stabilise

Nicholas Forsyth

Market Matters

Last night, Crude Oil fell 7.5%, Iron Ore 5.4% and Copper 3.5%, while US equities were only down ~0.5%, basically dismissing all things Greece. Trading opportunities in the commodities space may be the next buy signal this very volatile market generates. At MarketMatters we have repeatedly been predicting fresh lows in Fortescue Metals (FMG) and Santos (STO), these were achieved yesterday for FMG, the question is, when does the selling reach panic levels and generate some potentially great trades? Markets remain very volatile at present, leading to pricing extremes in different sectors at different times i.e. both overpriced and underpriced. For example Commonwealth Bank (CBA) crashed 18% into panic lows in mid-June when the ASX200 was trading ~5470. Yesterday, the ASX200 closed at the same level, but CBA has rallied over 9% from the June lows. Hence the answer to the most popular question at present: (VIEW LINK)


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