I rarely witness more negativity directed into two specific sectors than Oil and IronOre. However, I believe we are actually in the middle of good countertrend rallies in some of these stocks over coming weeks. When all analysts are talking the same story, it's time to consider the alternative view again. Firstly, let's consider what happened with CrudeOil last night. The Saudis have re-established some market share by simply pumping more oil and making it clear they would increase production to satisfy any increasing demand. However, Crude Oil was up 1.7% on this apparent bad news, a very bullish signal. Secondly, let's look at IronOre/FMG, both of which have been hammered over recent months/years. There is definitely no bottom in sight for IronOre, but a rest to the decline feels due. The potential key to a sharp rally in FMG are the massive short position +20% of available stock and a potential strategic investor that would alleviate any debt concerns, step up Glencore? For detailed report (CrudeOil/WPL/STO/IronOre/FMG) see (VIEW LINK)
We're dangling the carrots out, but looks good today!
Did another friendly wager go down on the FMG vs CBA call?