Bismuth Bonanza for Castile Resources

Bismuth Bonanza for Castile Resources

The ASX All Ords is hovering around record highs but it is hard to figure out why. The economic outlook is aneamic. War has broken out all over the World. Trump has gotten everyone second guessing what his next move will be. Where we are headed is uncertain at best. Yet, the market is at record highs as we count down to the end of the financial year. Maybe the market is expecting lower interest rates.

The oil price has surged because of the Iran conflict and the Index has spiked out of the downtrend, but the Metals and Mining Index has fallen back to the downtrend line. That is anomalous as wars are usually good for metal prices. Both BHP and RIO have been particularly weak and that is usually because institutions are selling. This is a difficult market to read, but I'm still of the view that this is the early stages of a bull market in resource stocks.

As I said a couple of weeks ago I took a punt in the market, buying a few at 5c. Chart analysis told me I was buying at or near the low and that is a good starting point. Since then I have done some more homework and am convinced that this is a special.