Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The copper market has managed another new all time high thrust up on the charts overnight and the market managed that action in the face of a patently bearish set of gains in both LME and Shanghai copper stocks. In fact, LME Copper Stocks were pegged at 377,550 tons for a rise of 1,550 tons, while Shanghai Deliverable Stocks were pegged at 131,891 tons for a really significant rise of 11,465 tons. Shanghai Deliverable Stocks are at the highest levels since 06/18/2010. Therefore it is clear that the trade remains focused on the prospect of demand outstripping supply and the overall condition in copper to continue to tighten. The breakneck pace of gains since the November lows (82 cents a pound) should give some pause to fresh buyers, as a continued march higher in prices might have to be accompanied by a more significant improvement in the global economy. Given the sharp upward movement in copper prices, that could mean the trade needs a lower Dollar, decent economic readings and a higher equity market to manage even more gains today.
Copper Market Commentary – 2010.12.31
by Dave Hightower on December 31, 2010
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The copper market has managed another new all time high thrust up on the charts overnight and the market managed that action in the face of a patently bearish set of gains in both LME and Shanghai copper stocks. In fact, LME Copper Stocks were pegged at 377,550 tons for a rise of 1,550 tons, while Shanghai Deliverable Stocks were pegged at 131,891 tons for a really significant rise of 11,465 tons. Shanghai Deliverable Stocks are at the highest levels since 06/18/2010. Therefore it is clear that the trade remains focused on the prospect of demand outstripping supply and the overall condition in copper to continue to tighten. The breakneck pace of gains since the November lows (82 cents a pound) should give some pause to fresh buyers, as a continued march higher in prices might have to be accompanied by a more significant improvement in the global economy. Given the sharp upward movement in copper prices, that could mean the trade needs a lower Dollar, decent economic readings and a higher equity market to manage even more gains today.
Tags: Copper, Metals
About Dave Hightower