WTF Chart Of The Day: Fat Copperfinger

Tyler Durden's picture

UPDATE: Silver prices just spiked higher also.

The last few months have seen Gold futures halted numerous times. Last week we saw stock futures collapse very rapidly in the middle of the night only to bounce aggressively. Yesterday it was the Treasury Futures turn to melt-up. Today, Copper futures just exploded 4.2% higher in a split second as huge volumes hit the COMEX. And then minutes later, it fades back.


We are sure it will be blamed on a "fat finger" but once again it suggests the algos are losing control of the asylum... Makes perfect sense to try and buy 1100 contracts in 30 seconds on Christmas Eve... so much for fiduciary duty (cue "busted trades" headline).



and close-up - each bar is 1 second...


And even closer, courtesy of Nanex:

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VD's picture

predicated on an algo...the new sound fundamentalz...

idea_hamster's picture

Mr. Metal-with-a-Ph.D. says "Hey!  I didn't need a prostate exam!"

Xibalba's picture

yesterdays dogs are tomorrows darlings...and vise versa

ZH Snob's picture

sure glad I'm holding physical copper.  my house now glows bronze at sunset.

Mercury's picture

Mad as hell and not going to take it anymore over at Popehat:


LetThemEatRand's picture

The pipes in my house were temporarily more valuable so I went on a shopping spree for stuff I don't need.  Man that was fun.   Thanks algos for the wealth effect!  Oh wait, I've spent my real money but now my paper pipe gains are gone?  It was all just an illusion of wealth to make me spend money?!  Got me again Lloyd, you crafty devil.

insanelysane's picture

"Makes perfect sense to try and buy 1100 contracts in 30 seconds on Christmas Eve"

Look, I needed to buy the wife something last minute and the traffic at the shopping malls is crazy so...

papaswamp's picture

....woo look at the 10yr yield ...trying to break the big 6 month high ceiling...

El Hosel's picture

 What time does the Green Machine What The Fuck Market Close today?

RacerX's picture

What?! Low volume whipsaw in the metals market? Say it isn't so..

locklimit's picture

(ADVICE)  Put Equity futures sell orders way above the market.  These type of moves will come to the most watched liquid market last.

Kaiser Sousa's picture
RPT-The Big Squeeze - mystery hand scoops up copper


* One investor held over 90 pct of copper contracts


* Further squeezes seen amid shortage of inventories top center no-repeat;">     

* Exchange says rules robust against manipulation

By Eric Onstad and Josephine Mason

LONDON/NEW YORK, Dec 20 (Reuters) - Someone has made a near billion-dollar bet on copper this week, virtually cornering the world's key stocks of the metal.

That has stoked worries of a supply squeeze, as warehouses run low on a raw material vital to global industry, and has raised questions about commodity exchanges' efforts to curb attempts to manipulate prices by aggressively heavy trading.

The London Metal Exchange does not identify investors holding positions but data <0#LME-WHT> on Friday showed that a single participant was holding 50-80 percent of available copper stocks on the LME, which handles the bulk of trade in the metal. The position was nominally worth up to $753 million.

Earlier in the week, one investor - presumably the same - had held over 90 percent of short-term trading instruments <0#LME-WHC> on LME copper - a position worth at least $862 million on paper. Traders have no clear idea who is behind it.

The firm doing the buying would not have had to put up all the cash up front and may well have had hedging positions and real requirements for physical copper. But it appears nonetheless to be a substantial gamble on prices rising.

find out who it is...i bet its him

"The story of how the Fed cleared the way for JPMorgan — a decision that brought many millions in profits to the bank — illuminates how the Fed has allowed the bank into a variety of markets for basic goods. Since 1956, a federal law has limited banks’ involvement in physical commodities. But confidential documents, many obtained under the Freedom of Information Act, show that since 2005 the Fed has granted three special exemptions to JPMorgan Chase alone."




Laughing Stock's picture

I'd like to give Mandy Drurey my "fat finger"

GrinandBearit's picture

My great big pile of pre-1983 pennies likes it.

oddjob's picture

My JJC puts are now pennies.

JimS's picture

Actually, at least 1 manufacturer is making copper bullets, instead of lead. Maybe DHS is buying up all that copper? (and they expand quite nicely)

disabledvet's picture

possible. bullets with a full metal jacket contain copper. do we need bullets anymore?

bilejones's picture

Everybody needs to have a store of four metals, Gold, Silver and lead dressed in a pretty little copper jacket.

TaperProof's picture

InflationBot has been engaged.

Sufiy's picture

The Big Squeeze - Mystery Hand Scoops Up Copper 

 Interesting time comes for the Copper plays. Commodities are so much hated asset class now, that the move could be very unexpected for many people, when rotation starts from overpriced equity markets into the real assets plays.

TaperProof's picture

China scooping up mad gold, kiddd