The copper market is doing its best to draft off the precious metals market strength. However, the copper market saw a bounce in prices this week of roughly 14 cents and most of that strength seems to have come as a result of positive leadership from the Chinese copper market. While we can’t argue against a continued rise on the charts, renewed concern of credit problems in the auto sector (from second and third tier suppliers to the big three) we can hardly get on board with a bullish opinion toward copper. Like a number of other physical commodity markets, the copper market seems to need some form of progress on the US stimulus front, in order to countervail and offset what could be some very discouraging US data ahead. However, seeing a BOE rate cut and positive leadership from the Chinese copper market overnight, gives the bull camp an initial edge today, but pushed into the copper market, we would be a seller of a bounce to $1.5695 in the March copper contract.
Copper Commentary – 2009.02.05
This content originated from – The Hightower Report.