One can find many reasons why copper prices should be going lower. Copper generally tracks the economy, and right now the sentiment is negative both domestically and in terms of the world. Disappointing stock markets make for less copper demand. The cost of production in Chile is way below the current price. But it is hard to hide the insider's knowledge from technicians, who spot abnormalities on charts. Copper futures remain strong, and we think possibly the experts see a bounce coming in equity prices. Copper generally tracks the stock market pretty well. At least, that's what they are telling us.
We are not always consistent on this site, for we believe technical indicators in a previous article suggest stock prices will go lower. However, indicators related to copper are saying otherwise. Probably we will be wrong on one or the other, but we would suggest copper prices may continue to show strength and move higher as the world markets continue to recover. There's a lot of infrastructure, particularly in Asia, that needs to be built. And copper is a big part of that infrastructure, both for electrical and plumbing needs.
Our article on Copper is in the Archives Section, below.
08-31-2010: September Copper: Tracking the Stock Market
08-26-2010: September S&P 500 Index: More Like Malaise
08-22-2010: November Soybeans: Double Top Formation
08-16-2010: October Crude Oil: Economic Dependency
08-13-2010: October Feeder Cattle: High Correction Probability
08-08-2010: October Platinum: Depends Upon State of Economy
08-05-2010: December Chicago Wheat: Weather Crisis in Eastern Europe
08-01-2010: October World Sugar: Shortages Face Looming Production Surplus
07-29-2010: August Pork Bellies: History Plays a Role
07-26-2010: December Corn: Weather Worries Dashed
07-22-2010: September Treasury Notes: Yields May Go 0.002% Lower
07-17-2010: September NASDAQ 100 Index: Steady Recovery
07-11-2010: December Soybean Oil: Argentine-China Rift
07-09-2010: September Coffee: South American Supply Estimates Increase
07-05-2010: December Oats: Flooding in Canada Puts on a Short Squeeze
07-02-2010: September Australian Dollar: Jumping the Gun on Interest Rates
06-28-2010: September Treasury Bonds: Interest Rates Could Go Lower
06-24-2010: September Mexican Peso: War Still Rages
Updated once a week (usually on Saturdays.)
Buy and sell prices are averaged where multiple contracts are involved, which is why they may not fall on an exchange tick increment.
# Commodity BS Buy Sell Last Gain Intended Rough Group
(Loss) Risk Percent
12 Sep Australian Dollr S 89.49 89.74 $ -3,360 14,880 15.7% Currency
22 Dec Soybean Oil C 40.06 40.67 40.80 $ 7,392 14,916 20.7% Grains
17 Dec Corn S 438.70 436.00 $ 1,785 14,960 20.7% Grains
5 Oct Crude Oil S 75.29 75.17 $ 450 14,950 5.3% Petrol
22 Sep U.S.Dollar Index C 83.00 83.31 82.93 $ 6,160 14,740 15.7% Currency
23 Sep Eurodollars C 99.68 99.65 99.68 $ -2,415 1,725 11.1% Finance
22 Oct Feeder Cattle C 116.65 117.13 117.00 $ 4,620 14,850 5.2% Cattle
8 Sep Coffee "C" C 164.20 186.00 177.10 $ 65,160 15,000 10.5% Softs
8 Sep NASDAQ 100 E-Min L 175.00 178.90 $ 6,000 14,880 10.5% Stock Id
16 Oct Natural Gas Mini C 4.15 3.78 3.70 $-15,280 14,800 5.2% Nat Gas
7 Feb Pork Bellies C 105.42 106.50 105.25 $ 2,814 14,980 5.3% Pork
4 Oct Platinum S 153.43 153.70 $ -660 14,980 10.5% Prec Met
12 Sep Mexican Peso (50 L 764.00 766.20 $ 960 14,940 15.7% Currency
7 Oct Sugar #11 World S 20.29 19.96 $ 2,377 14,896 10.5% Softs
3 Sep Silver C 17.81 19.26 19.04 $ 21,660 14,985 10.5% Prec Met
8 Nov Soybeans S 102.48 102.60 $ -720 14,080 20.7% Grains
5 Sep S & P 500 E-Mini C 104.20 107.59 106.37 $ 8,325 14,975 10.5% Stock Id
20 Sep Treasury Notes C 125.62 125.91 125.19 $ 5,200 14,800 11.1% Finance
11 Sep Treasury Bonds L 134.19 133.69 $ -5,830 14,960 11.1% Finance
14 Dec Chicago Wheat L 682.70 695.00 $ 8,190 14,980 20.7% Grains
Adjustment for Open Positions: -($ 9,192)
Prior to 8/23:
Other Gains/-Losses This Reporting Period: $ 868,733 ***
*** For Contracts Closed or Rolled Forward __________
Total for all Trades: $ 972,369
Trading in commodities involves substantial risk and past performance is no guarantee of future profits. Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders/brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" for confirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $30,000 capitalization requirement per trade, depending upon initial contract margin requirements. Zenith's actual trades may be larger. $22 per round turn for futures is deducted from profit figures. Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.
