Bidding for Metals

Mergers & Acquisitions continue or at least their rumours do - BHP Billiton, the biggest mining company in the world is rumoured to be bidding for the third biggest miners Rio Tinto something in excess of $100 Billion and this caused the shares in Rio jumping 11% in London stock market yesterday and forced some CFD shorts closing with massive losses - short positions which are still open or those who went short on their CFD positions at higher up prices may have a sigh of relief this morning after Rio's share prices have fallen back overnight in Australia.

According to data collected by Bloomberg an amazing 473 deals or bids valued at $55.4 billion, have been embarked this year in the mining industry alone as a result of the five year rally in metal prices.

I have personally stopped shorting any of the mining stocks for the above reasons - the time to go for confident shorts for my money would be when there are clear signs that the demands for base metals are falling - at the moment there is no sign of that.