The index has slipped back into its torpor with a loss of 25 points at 1.44 pm. The overnight lead was mildly bullish but BHP and RIO are talking down the iron ore price and the market seems to have taken fright. It's a motherhood statement – everybody is aware of what's happening with the iron ore price – and I assume it's a political response to the passing of the mining tax.
I haven't done much except to punt some Intrepid. This stock has been crunched as Indonesia declares its intent to own majority stakes in Indonesian based resource projects. I liked the fact that the stock had made a marginal new low relative to last October and that downside momentum was slowing. IAU made an announcement mid morning about the fine print; which is that this process will probably take up to 6 years after initial production and that, presumably, a price is going to be set for the stake. Either way, after the usual overreaction, it was due a bounce and I bought at 86 and have tipped out half at 90 with the rest on offer in the mid 90s.
1.56 And I stopped out of the AGO short at 306, slightly against my instincts. It was through my stop and seemed to be ignoring the iron ore chat but now it has sunk back to 302.
4.12 The market recovered somewhat; the finish was 4275, down 16. Anyway, a minor down day for me and the irritating thing was that if I'd held in AGO (last price 296), I'd have had another winning day. Oh well. IAU closed at 90 which is where I sold three quarters of the long and I'm holding a few for the morning. Otherwise, not a lot of change.
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