Two Ways: Rio Tinto Steeling China's State Secrets?
Strengthen your portfolio in good times and bad.
So far, there isn't much word from the Chinese government. But Australian Foreign Minister Stephen Smith said there doesn't seem to be any association between Hu's detention and Rio's current negotiations with China over the price of iron ore.
Regarding the talks, China has been adamant about a 40% cut on last year's contract price -- despite other Asian steelmakers settling on cuts of 28% to 33%. Still, the negotiations continue, despite a previously set deadline of June 30.
Rio Tinto ADR shares still finished higher today, up 0.96%, to 125.68.
From the Bull Pen: Despite Smith's claims that this had nothing to do with the negotiations, word is that the Chinese's decision to play hardball with Australia has thrown the commodities market into disarray. One thing is for sure: Investing in commodities and related stocks requires an cast-iron stomach. As for steel, Arcelor-Mittal (MT) holding $28 support is bullish for the intermediate term. A sell stop can be set below that level.
Click here to enlarge.
From the Bear Cave: The iShares 20+ year Treasury Bond ETF (TLT) has had a strong rally since mid-June, but is now showing signs of being overbought. Bears can consider fading (read: sell) the stock into $98 resistance. A buy stop can be set above that level.
In finance, people often quote Mark Twain's "History doesn't repeat itself, but it often rhymes." Allow me to quote another one of his famous lines: "Denial aint just a river in Egypt."
Have a good night!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter