Copper has made a monthly reversal as well and seen a steeper correction so far than stocks. China overpaid the market with its outstanding demand as they run into the same trap Japan digged for themselves 20 years ago than the world proclaimed that they would be the big competition for the USA. Physical demand will fade away as the real estate bubble in many countries is about or already imploding ( except the Chinese one with an entire empty city build). The conservative target is 250/60 area for a correction which meets a decent retracement level of 38% and a retest of the break away gap area. We have to see when we get there if more downside is imminent as inflation will be another driver of prices at some stage this year than Obama throws printed money at Mainstreet to save jobs.
Thursday, February 4, 2010
Copper update
Copper has made a monthly reversal as well and seen a steeper correction so far than stocks. China overpaid the market with its outstanding demand as they run into the same trap Japan digged for themselves 20 years ago than the world proclaimed that they would be the big competition for the USA. Physical demand will fade away as the real estate bubble in many countries is about or already imploding ( except the Chinese one with an entire empty city build). The conservative target is 250/60 area for a correction which meets a decent retracement level of 38% and a retest of the break away gap area. We have to see when we get there if more downside is imminent as inflation will be another driver of prices at some stage this year than Obama throws printed money at Mainstreet to save jobs.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment