But what about copper ?

Huge hit in the copper market today - down 10 cents on the CME !!!!
+$2500 per contract for those who are short !!!
Apparently there was no bailout for holders of Chaori bonds.

Copper prices dropped to their lowest level since late July in trading on the London Metal Exchange on Friday March 7.

The red metal was sold in big volumes at the opening of trading following news that China has witnessed its first ever corporate bond default. After its two-year corporate bonds matured on Friday afternoon, Shanghai Chaori Solar said that it had only managed to pay a small portion of the 90 million yuan ($14.6 million) interest owed to investors. The small solar cell manufacturer first warned that it was at risk of defaulting on its bonds a year ago, but at that time the state-owned underwriter of the bond, China Securities, announced that it would bail out investors.
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Spot Copper Price Movement (2014-3-7)

Mar 07, 2014 05:30 GMT Source: Shanghai Metals Market(SMM)

SHANGHAI, Mar. 7 (SMM) – Spot copper was offered at discounts of RMB 80-160/mt in Shanghai on Friday. Traded prices were RMB 48,880-48,980/mt for standard-quality copper and RMB 48,900-49,120/mt for high-quality copper. Dragged down by declining SHFE copper prices , spot copper prices fell below RMB 49,000/mt. Cargo holders were active in moving goods, and downstream producers had slightly higher buying interest on Friday. Since price gap between high-quality copper and standard-quality copper remained less than RMB 50/mt, middlemen were inactive in trading.
Markets were dominated by wary sentiment due to massive sell-offs on Friday.
 
syswizard said:
May copper near lows of the session !!! Down 13 cents.
Wow, wow, wow.....
(Hey Dennis Gartman - what do you think now ?)
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I've been flashing a red light for copper for a few weeks now and explained why it was going to tank. This is just the beginning. Gartman knows Jack.
 
Handle123 said:
Nothing has changed for me in these two markets, still rolling over, doing spreads. Charts say for short term selling puts in Copper.
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Nothing new for me, staying short Copper since Feb 2011, rolling contracts, have added four times, since mid Feb, switched to selling calls. Still long Nat gas, added four times, selling put spreads, rolling contracts.

I trade so long term in commodities, what anything does week to week doesn't have any weight to how I trade. The Copper trade has now been the longest I have ever had same idea of direction overtaking a Brit Pd that I had on many years ago of 2.5 years. Almost like trading stocks.
 
Handle - very interesting. Patience is required for this market that apparently looks to be manipulated...or at least the numbers are !!
LME Stock levels this morning: 269,000 tons - a new low.
How can that be ?
Spot LME copper indicated at $3.14/pound.
Last week was a huge test of the $3.00 level - which has been the absolute bottom over the past 8 years...it's never been broken.
Is this time different ?
May CME contract now at $3.0470.
 
Decisive break of the $3.00 level. May at $2.96.
Volatility should be picking up....we should wash-out around $2.85-$2.90.
Then look for a bounce which should be shorted again.
I think we could ultimately see $2.50-$2.60 for the May contract.
 
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