dogsie It is very disappointing to hear that you have big losses...

dogsie
It is very disappointing to hear that you have big losses in your super fund this is not a reason to hold onto any stock.

You can always buy back later.

what is important is where you think the stock is heading in the short term.

My view is that this resource tax selling will continue for a while especially in the smaller sector. Most investors in the small cap stock sectors had probably not even heard about the henry report and the 40% tax until it hit the news on Sunday.

Their first re-action is one of disbelief. This is a stupid idea(which it is) it will never get passed. However as each day goes by and the selling continues more and more investors will get stopped out or just sell out because it is all too hard. Many more will think ,well what if it gets passed. this will create even more worry.

This tax has the potential to do the the small miners/explorers what the GFC did. While it will not be as damaging the process and sentiment is the same. People start selling , which causes more selling, optomistic buyers move in, but the selling continues, new buyers bid lowers but get set, the pattern continues. As it progresses further fear takes over and selling for the sake of selling happens. At some stage it will stop but when. I can see this pattern starting emerge in many of the smaller stock.

IFE is a example. I think IFE will fall further and TRF will follow.

Right now sentiment in small mining stocks is very bad. Something needs to change for sentiment to change. I dont know what will change the sentiment