CFD Short Term Targets

Though it would be worth sharing what I think are a couple of short term targets for trading contracts for difference. Now there are many who will say that these are obvious targets, but that is exactly the point. Make sure you do your own research before trading but these are two stock that have served me well recently.

With the currently political instability, problems in the US and China slowing the Australian mining sector continues to take a hit. It is for that reason that BHP and Fortescue are interesting prospects to go short on.

BHP

Have a read of the article below which ran on the Forbes website yesterday 27/06/2013 leading off with 'Base materials have been a heavy load to bear over the past two years since the China recovery has never really taken hold. This is seen in the shares of natural resources companies, such as BHP Billiton'.

Now the Forbes article is referring to the US share price, but it is reflective on the ASX at the moment. Keep your eye on the trend here and monitor demand but definitely a stock to go short.

http://www.forbes.com/sites/zacks/2013/06/26/shares-of-bhp-billiton-hit-four-year-low/ 

Fortescue FMG

FMG has been in a downward trend since February now and is not showing signs of breaking out of this. Last week the Western Australian reported that 'shares in Fortescue Metals Group have tumbled after the iron ore miner cut its production guidance by two million tonnes for the financial year, citing the impact of "unseasonable wet weather" on its operations'.

Further to this FMG have themselves said that 'Fortescue is now in a phase of significant cost reduction and continues to focus on operational efficiencies which will see it moving down the global cost curve'.

All in all this looks very much like it has further to fall but monitor demand and set tight stops if you choose to trade.

http://au.news.yahoo.com/thewest/business/a/-/national/17679476/fmg-slumps-on-output-slide/  

Like I said do your research and remember to make sure you trade with in your means, sticking to a plan.