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To: Cogito Ergo Sum who wrote (86082)1/21/2010 1:14:37 PM
From: Keith FeralRead Replies (1) | Respond to of 118717
 
Of course it is. They don't want to pay up for commodities any more than anyone else, so it pays in their interest to start talking about inflation to get commodity pricing back in their favor - lower. China does a pretty good job managing expectations and pricing for commodities, having been totally abused by companies like BHP and others into the 2008 bubble.

It's not much of a shock to see the US fire back with regulatory threats, since we are still a long ways from any monetary tightening this year, or next?

It will probably take a couple more days for the market to dust itself off from the worries today.



To: Cogito Ergo Sum who wrote (86082)1/21/2010 1:38:16 PM
From: Keith FeralRespond to of 118717
 
Another "good" thing about January is we always get a nice selloff in crude. Things look to be slowing down on the descent on the USO, which is touching the 150 dma.

I've been chipping away at some of my cash this afternoon, and will look to redeploy more tomorrow.



To: Cogito Ergo Sum who wrote (86082)1/21/2010 4:31:56 PM
From: SnowshoeRead Replies (1) | Respond to of 118717
 
>>I'm a tad spooked by China.. but that might be exactly what they want<<

I suspect the current Chinese bubble-popping threat is linked to the annual iron ore negotiations...

Iron ore giants, China square off over pricing
Showdown could benefit Canada’s junior iron miners*
cbc.ca

The Chinese media is being deployed to hype recent in-country ore discoveries (just like they did during the previous year's negotiations)...

China says new iron ore finds will ease price talks
ph.news.yahoo.com

*Note: I have a small spec position in BIM.TO/BIMGF, mentioned in that first link above.