Australian Investment Blog

Is the Resource sector simply too dangerous at the moment?

Markets have an amazing ability to humble all of us......yesterday the ASX200 rallied strongly generating buy signals, even BHP closed almost 2% above its open - all felt good! This morning, the US has fallen sharply with the Dow down 257 pts (1.5%) and BHP looking set to open under $20 for the first time since November 2008 when at the epicentre of the GFC.

The correction in the US is aligning itself as anticipated; a bit more would not surprise, but fresh all-time highs into 2016 still look, technically and structurally, ‘on the cards’.

The resources sector continues to get clobbered led over recent days by Santos and BHP, two stocks Market Matters have been recommending!