But what about copper ?

Quote from elisab:

It seems to me that the whole metals market is showing an interesting work of accumulation. The aluminum for the third time since June has come back into area 35 and the copper is clearly drawing a head and shoulder figure.
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You could be right, but my gut tells me this is just a temporary bounce off low levels.
Economies of the world not recovering that well...especially in the area of construction. QE taper my just precipitate a mini-recession resulting in huge hits to precious metals and a good hit to industrial metals.
 
Morning Copper Market Report
Thu 19 Sep 2013 07:25:46 CT

While the copper market clearly benefited from the Fed's surprise "no taper decision after showing consolidation price action around the $3.20 level, some traders feel that this recovery looks to be partly fundamental and partly technical in nature. Due to holidays in Asia, copper prices overnight might not have seen as much of a positive reaction as would have been possible if all markets were open and trading.

Declines in weekly Shanghai copper stocks, released earlier this week because of the holiday closures, as well as the 11th straight daily decline in LME copper stocks are also seen as positive factor for the market. Other traders feel that given the Fed's strong definitive "on hold" stance, it may be difficult to rekindle the tapering threat with one or two US economic data points
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Commentary: Can someone say "phony rally" ? All this taper postponement news just indicates these world economies are not reacting to the current level of stimulous very well and that weakness abounds. Housing prices up 15% year-over-year ? All due to phony fed money.
 
Quote from syswizard:

You could be right, but my gut tells me this is just a temporary bounce off low levels.
Economies of the world not recovering that well...especially in the area of construction. QE taper my just precipitate a mini-recession resulting in huge hits to precious metals and a good hit to industrial metals.
More...

After the tapering risk, green light for metals.
 
Quote from elisab:

After the tapering risk, green light for metals.
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Maybe. But once inflation starts to rear it's ugly head and interest rates start rising, that light turns to red.
 
Quote from syswizard:

Maybe. But once inflation starts to rear it's ugly head and interest rates start rising, that light turns to red.
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As the tapering has been postponed, the fall of interest rates should now favor the U.S. real estates and then the request for copper.
 
Dennis Gartman on CNBC last night indicated he was mombo bullish on copper and steel.
No real reason given however.
I guess he's expecting a huge improvement in global economies....I don't quite "see it".
 
Morning Copper Market Report
Thu 26 Sep 2013 07:29:45 CT

The copper market traded up sharply overnight, and in the process copper prices reached up to their highest levels since September 23rd. Positive vibes from China overnight, minor threats against supply from Peru and another decline in daily LME copper stocks figures are widely seen as positive factors this morning. While copper is benefiting from improved Chinese demand talk, that support may be somewhat tempered by another holiday period next week in China.

So far, the pattern of consistently declining daily LME copper stocks has not received that much attention by the market, but that may be due to consistently improving European economic conditions. Copper will probably see some impact from the US Jobless Claims data, which are expected to show a jump later this morning although the market is also expecting to see an upward revision on US GDP figures.

Another issue that might impact copper prices today is a series of US Fed speeches, as the market remains sensitive to the prospect of Fed tapering. Another issue that could have held back copper prices this morning is news that Wal-Mart intends to cut orders to suppliers over the coming two quarters, as that could rekindle concerns towards the economic recovery and in turn future US copper demand.
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Commentary: Well, to say this market is getting crazy would be the understatement of the century. Wal-Mart's moves now a factor ? Jobless claims impact ? This market is on thin ice IMHO.
 
Morning Copper Market Report
Mon 30 Sep 2013 08:09:32 CT

The copper market has managed to remain in close proximity to last week's highs during the early going today, and has done so in spite of the macroeconomic pressure being created by the prospect of a US government shutdown. However, some traders feel that copper was probably supported by recent Chinese economic data and by the positive dialogue surrounding the Shanghai Free Trade Zone news.

The copper market might also have been strengthened by news that two Chinese mining companies have made bids for a project in Peru over the last two weeks, as that suggests the Chinese still have interest in foreign copper supplies. Other traders feel that copper prices are being pressured by the threat of serious declines in equities and adverse currency market action ahead.
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Commentary: This market is in quite a quandary...to say the least !!
 
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