Since late October last year the normally positive correlation between Chinese equities and Copper began to diverge. That delta has increased since as has the gamma. You may get a temporary rise today (Friday Feb 7) as the Chinese return from their Lunar New Year, but even if that does occur it will be extremely temporary.
But what about copper ?
- Thread starter syswizard
- Start date
It occurred to me after posting above that you may not have been joking. You use Gartman as a Bellwhether - for anything? LOL.
The guy can't even get it consistently wrong. Buy Gold using WTI? The PBOC renege hoax? Seriously, he's a talking head and like all talking heads he gets it wrong more often than he gets it right just like your average dumb trader that doesn't think it through for themselves. But you can't depend on him getting it wrong. Major filter on all these THs. Just more noise.
Indeed....$3.19 held and now we are up a few pennies to $3.24.
Looking at the charts....this thing has just been so range-bound lately.
The range is the key, while it's in one you can be reasonably certain the big players are still not done. They'd prefer to sell and short into a rising market, as always, and even precipitate that rise with some spoof bids, but in this risk-off market brinkmanship in not on the agenda.
They'd prefer to sell into a rise, but they'll also sell into a fall.
Spot is unlikely to get above 3.35, even 3.30 will be a stretch, before heading below 3.00.
They'd prefer to sell into a rise, but they'll also sell into a fall.
Spot is unlikely to get above 3.35, even 3.30 will be a stretch, before heading below 3.00.
syswizard - what timeframe are you trading? I typically take a medium term view - a few weeks to a few months. My analyses reflect my expectations over that period of time where the current levels of physical stock reported by LME on any given day will be largely irrelevant to price development over that time horizon.
Are you day-trading this commodity?
Are you day-trading this commodity?
That's a joke, right ?
The price action has been positively terrible lately....choppy, trendless.
Interestingly, LME stock levels continue to go lower.....which is very puzzling:
Now at 306,400 metric tons.
I believe this is the sole reason the price has not plunged...(yet).
When stock levels begin to rise, look-out below.....
There is a supply deficit, an artificial one. And even that isn't causing the price to rise. Take the hint. Massive supply on-line in 2-3 months. We'll be sub-3.00 spot for the first time in 4 years before the end of April. I am done trying to advise others of the information that is already out there in the public domain with respect to Copper and what that most likely means to price development. Good trading.