One day down, one day up. That's enough to given seasoned roller coaster riders vertigo.
I am talking about the share market in case you haven't caught on as the futures market is pointing to a 0.36% rise for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning thanks to a big bounce in European shares and a record closing high for the US S&P 500 Index.
That's enough to put a smile on anyone's face – unless you are invested in resources. Mining and oil stocks are likely to lag today on the back of a slide in most commodities and the recent strengthening of the Australian dollar.
The West Texas Intermediate (WTI) crude oil price tumbled 1.3% to $US59.71 a barrel, as iron ore fell for the third day. The Metal Bulletin ore price lost 0.4% to $US62.30 a tonne.
At least it's holding above $US60 a tonne, which is higher than what most analysts are forecasting. But that's the problem as it may not stay there.
The China Iron & Steel Association is predicting that the iron ore glut will remain until at least 2019 and Bank of China analysts are warning that the rally in the steel making ingredient will run out of puff.
Expect more turbulence for Rio Tinto Limited (ASX: RIO) and BHP Billiton Limited (ASX: BHP), but it's Fortescue Metals Group Limited (ASX: FMG) that will be under the most pressure today as Credit Suisse downgraded the stock to "underperform" from "neutral".
I couldn't agree more. With BHP and Rio Tinto still representing value and exposure to iron ore (in case the bears got it wrong), why do you need to move up the risk curve?
The banks should outperform on a relative basis today but not National Australia Bank Ltd. (ASX: NAB) as the stock trades without its dividend entitlement.
Another that could drag on the market is liver cancer treatment developer Sirtex Medical Limited (ASX: SRX).
It may give back some of yesterday's 35.1% jump to $27 as the bounce was based on news that doesn't change the outlook for the wider adoption of its treatment. What's more, Bell Potter has cut the stock to "sell" from "speculative hold".
There's also plenty going on in the corporate action front. Grocery and hardware distributor Metcash Limited (ASX: MTS) is considering spinning off its automotive business into a separately listed company, according to The Australian.
Vocus Communications Limited (ASX: VOC) is also moving to shore up support for its takeover of Amcom Telecommunications Limited (ASX: AMM) by selling a 10% stake in the target to four fund managers, reported the Australian Financial Review.
TPG Telecom Ltd (ASX: TPM) is expected to vote against the merger and Vocus is not allowed to vote on the deal. Selling shares to fund managers who are supportive of the acquisition could help Vocus secure enough votes to get the deal past the line.
Meanwhile, uranium miner Paladin Energy Ltd (ASX: PDN) issued a third quarter update, while mineral sands producer Iluka Resources Limited (ASX: ILU) said it was expecting higher zircon, rutile and synthetic rutile output in 2015.
