Iron ore is the big story in the markets right now and while we saw iron ore futures trading down 4% yesterday, the 8% fall in the spot price yesterday has...

Iron ore is the big story in the markets right now and while we saw iron ore futures trading down 4% yesterday, the 8% fall in the spot price yesterday has taken everyone back. Spot prices have made a lower low and some will be eyeing the $86.70 level seen last year as a possible target. Headlines that iron ore is in a bear market have been seen everywhere and the current fundamentals are not great for the commodity, with record inventories and falling steel prices. Price action certainly favours being short FMG and from a sentiment perspective there isn't the clarity to be long right now. When you see volumes at 116% above the 30-day volumes you know there is a fairly sizeable liquidation going on and if looking at longs it's advisable to see stabilisation in the iron ore price and falling volumes in the stock.