Decent rally today for the red metal...Naturally, all boats are rising on the tidal wave of QE3 money pouring into the economy. Still, relatively speaking, this commodity has been weak.
I'm looking at $3-$3.10 as an area to cover shorts, in the next 2-3 months. Anyone care to comment on the implications for equity markets given copper's vertical plunge in the last 2-3 weeks?
They finally emailed me saying it was an outsourced operation that caused the take-downs. Is everything today screwed-up by this outsourcing to India ? Appears so....
3 weeks ago, you could almost "feel" that someone was manipulating the copper market to make it look strong. Once they exited, it's been weak, weak, weak as hell. Nothing seems to rally it: not FXI, not housing, not jobs. There is <some> correlation to gold and silver which are due for a rally, but not much. $3.30 looms huge for any remaining bulls. Otherwise, any fiscal/monetary problems that appear are taking this thing to under $3.00.
Copper up a few pennies on jobs news and mostly due to a weaker dollar. As a side note: The Yen continues it's march to "penny parity"...i.e. 100 yen per dollar = 1 Yen per cent.
Not so. Watch what happens when the central bank flood gates start to close. Commodities stand to take a huge hit to the downside.
A new idea on why copper is weak: Emerging Markets !! http://www.marketwatch.com/story/the-next-fat-pitch-2013-03-08?link=MW_home_latest_news EEM, once strong, now uber weak.