# WTF! Base metal prices slide!



## el_ninj0 (14 April 2005)

What the hell is going on today?, why did all the base metal prices slip?, especially nickel??, went down 6% in like 12 hours, what the hell is that?


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## markrmau (14 April 2005)

*Re: WTF!*

I personally think it was a bit of fund / technical selling on the LME - more to do with market uncertainty and fear, rather than any change in fundamentals.

I bought $15k of bhp as I think this pull back is a buying opportunity. (Don't blame me if it all ends in tears though).


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## el_ninj0 (14 April 2005)

*Re: WTF!*



			
				markrmau said:
			
		

> I personally think it was a bit of fund / technical selling on the LME - more to do with market uncertainty and fear, rather than any change in fundamentals.
> 
> I bought $15k of bhp as I think this pull back is a buying opportunity. (Don't blame me if it all ends in tears though).




Its already ended in tears. This is a disaster of massive proportions. Australias market is to heavily reliant on  the US market, as it dropped, so did Australias. As some of you might recall, our Prime Minister promised that the economy would be kept in good shape. As you will notice, this is not the case. Blatent lies fool the public again the headlines should read.

I am pulling everything out at the this. I have no confidence left in the market.


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## taurus (14 April 2005)

*Re: WTF!*

With regard to BHP (am also a stockholder):  The Age article here

The above isn't exactly positive reinforcement that everything will turn out ok   lol

I'd be interested to see a more astute investor's take on that article.

T


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## RichKid (14 April 2005)

*Re: WTF!*



			
				taurus said:
			
		

> With regard to BHP (am also a stockholder):  The Age article here
> 
> The above isn't exactly positive reinforcement that everything will turn out ok   lol
> 
> ...




I wouldn't call myself an 'astute investor' but since BHP had been flagging the potential for claiming a higher price due to the freight variance since last year they have only themselves to blame for not getting together with RIO etc, they thought they could go it alone and stuffed up. Iron ore prices wont stay this high for ever.  Still it's a nice hike from last year and BHP is heavily diversified, this commodity cycle is not over yet, if WMC goes through as it appears it will then longterm BHP is sitting well.

LME prices do gyrate a bit, a few key commodities are testing highs (hence the volatility imo), once they break through it'll be a different story (eg Zinc, nickel, lead...). Gold looks like it's searching for another near term bottom, still in a steady uptrend. Unlike American co's like GE which rely on consumer spending we have the big commodity traders to rely on here in Australia. Doesn't mean they'll hold the whole market up though.

I wouldn't believe anything a politician tells me anyhow, everyone know that an Australian Govt can't 'control' an economy or its interest rates- the global markets aren't that tame. Let's see how this top in the market plays out. See the derivatives forum for views on the all ords and xjo. I'm waiting for a signal to short it. I know brokers are almost always positive since clients want to buy not sell but that's another story...


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## taurus (14 April 2005)

*Re: WTF!*

Cheers RichKid, time for me to do some further reading


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## RichKid (14 April 2005)

*Re: WTF!*



			
				taurus said:
			
		

> Cheers RichKid, time for me to do some further reading




Try the AZR (Aztec resources) thread in ASX stock chat forum, I hold AZR and have followed their iron ore price story- you'll find some discussion of it there. Also note that BHP is currently above it's most recent trend line but it is just spewing cash, so much money being made atm...


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## GreatPig (14 April 2005)

*Re: WTF!*

Definition of a bad market day: when your best performing share for the day is the one that's in a trading halt.

Cheers,
GP


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## RichKid (14 April 2005)

*Re: WTF!*

I get the impression from the fact that the market is holding above support that this'll range and then reverse once the next interest rate rise appears certain. A long way to the next support level from here....get a parachute.


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