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)