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Copper Plunges To Fresh 5-Year Low
UPDATE: Copper just melted up amid a heavy short squeeze (despite a record rise in stocks at the LME) - to $299, a crucial point for stops... Let's see if it hold.
As we explained in great detail yesterday, the selling in commodities is far from over. The extent of China's commodity-backed-financing is only now beginning to be understood and forced sales (along with the vicious circle of collapsing collateral values and increasingly tightening credit) are hard to stop for a government set of reform. Copper prices were heavy overnight in Asia but this morning has seen futures plunge on heavy volume below $289 - the lowest since July 2009- breaking key support levels. For the same reasoning, zinc and aluminum are under pressure, as is steel rebar and gold.
Which has dropped copper prices to 5-year lows...(breaking critical support)
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Don't worry about it, it's the weather...
Sure, it is the weather ....on MARS /sarc
Dr. Copper is telling us all what to expect in the near future...you had better listen !
For the stackers, this is probably good news as you are about to get another buying opportunity...for the umpteenth time in two years.
It's hard times for even copper wire thieves.
Yes, but good news for someone building another still...
This is suck for Boris because copper mine operation is only produce solid core and twisted strand ore, not hollow tubing.
Headbanger is think now brass ammo price go down.
I hope headbanger is think good.
yep. copper wire thieves.. used book store Dudes.. Gold and Silver Holders.. the list goes on
Jesus Tyler ZH is quickly becoming a contra in trading...copper whiplash
That's one fugly chart
because it's too decentralized of a market to manipulate...
Doctor copper.......no longer applies.
what happens when the doctor goes on life support?
Probably because it is goldman's proprietary "we can crash a market" algos. I see the slap, cap, create support, then break the support pattern in thinest market pattern. Wait for them to put in their big paper plunge and then buy it up.
never did. the same folks who gave the world the biggest bubble in history (US housing) then did all they could to create one in China so to bail themselves out...have failed.
The long copper speculators now have more in debt than most countries do.
Since most of the money is long since gone in China they'll never see that money again. Killing dissidents doesn't make it many better either.
Should be interesting to see how the restructuring of TXU goes. That's "40 large" as they say. Don't see that three billion for Puerto Rico amounting to a hill of beans either. The folks who felt compelled to follow along with that one really need to have their heads checked.
Any case...no more Fed as the personal piggy bank now. Instead it's "War with Russia" (with a panoply of vengeful Alawites thrown in just to clear everyone's head for a change.)
You are correct. As ZH has described, the value of the commodity itself is of little importance. Copper's main use (as well as Iron, Zinc, Aluminum, etc.) is to unlock the Chinese interest rate differential and skirt the Chinese capital controls.
The only news that's appeared is that USD/CNY has finally hit 6.20, and now commodities across the board are plunging.
My only question is how much fine control the Chicoms have over the rate.
who cares, it's Yellen Day got to keep the mkt. green to show our unwavering support ...
Wish someone would tell Lowe's and Home Depot that...
If you need some Plumbing done...do it now...
Keep it up and maybe they can start putting a little copper in pennies again.... Nah what the hell was I thinking?
Short copper / long silver.
let us see how the rehypothecated chains break, and the algos react to this edge case
Time to STFD Yogi!
Dr. Copper
Dr. Copper caught a cold....let's hope he doesn't get the flu. If the distress spreads, unless a massive offload of UST's happens to support the commodity complex via said China, expect a "buying" opportunity soon enough.
ori
All that Urban mining finally hitting the market.,..
Yeah, strip-mining at that...
Shows you the power of the Chinese and their economy....what effects they can put on just one commodity
Thank god the global CB's dumped $5+ trillion dollars onto the bankers to save us from a collapsing economy. If they hadn't copper prices would fall, consumption would lag, and then people would be sad.
The single biggest CON in the last 50 years is that GOLD IS NOT MONEY.
Ho Li Fhuk! What the Fhuk???? I Got to sell dis Shit Kwik!!!!!!
This is coming from forced liquidation of the triple margined copper loans in China. To buy this long term(over night) is to sell the SPU's in any year since 2009!
The chinese stuffed dr copper's stethoscope up his ass, he's still a doctor.... He will get that shit off his tool eventually.
They manipulate everything else... why not CU?
With the Stock Market at giddy highs and unemployment low... the thing to do is to BTFD!
Copper leads the market...(theoretically)
Copper tubing, in many instances, has been replaced by plastic like the various polyethylenes which in turn is being manufactured increasingly from cheap natural gas stocks.
Just like in the electrical wire business Cu has been replaced with Al.
GS;
"While we believe Chinese economic growth is slowing, we think much of the recent drop in copper prices is more attributable to investors expressing a bearish view on China via short positions in commodities, rather than a signal of sharply slower growth in China."
Au and Ag are collapsing again. Not buying today, maybe tomorrow at the earliest.
Yeah I'm waiting for this to find another bottom before loading up on phyz again.
There is still a bubble in Tibetian mastiffs...
A Tibetan mastiff puppy has been sold in China for almost $2 million, a report said Wednesday,
http://www.businessinsider.com/chinese-dog-sale-2014-3
Looks like gold is down a lot today too. I can see gold heading below $1000/oz this year.
You're such an expert with a worldwide reputation. How could I possibly deny your prediction.
Selling climax in copper today. Beginning of the accumulation period. All the bad news has now been discounted.
And then copper recovers all today's losses in less than 2 hours -lol
ZH is such a contrary indicator... both short term and long term.