I have read a few posts from some of the traders and I am a little confused as to why people ask the same question over and over again about why is ABC or DEF is doing what it is doing.
I would like to add my 2 cents and point out some things about the markets that I have noticed over the years.
The Stock, forex, commodity etc markets do the same thing every day "They go up and down"
Sorry to burst theories but this is "NORMAL MARKET BEHAVIOUR".
The market behaves the same way as humans do, "irrationally".
Nowadays the HFT (High Frequency Trading) programs are actually picking up wording in news articles, wording from live shows like Bloomberg, CNBC etc. and acting on this.
What I would say is stop and just trade.
The market is always right so if you think BHP.AX is worth $50 then I will Sell it to you at $50 today in any size you want and you can HOLD it for as long as you like.
10 Nov 2011 Price of BHP = $37.48
(this is not an actual offer to buy or sell a financial product just making a point)
relevant discussions welcome.