is it a buy, page-7

I think its a buy today fwiw.. reasons already given..
everything up... but I'd especially draw your attention to the very nice article on kitcometals.com..

http://www.investor.reuters.com/Article.aspx?docid=10357&target=companyoftheday

it basically says that the funds (hedgies et al) are selling copper but the actual consumers of the stuff
aren't... the article is a nice extension of the discussion we were having here last week about the risks - china/india story (fundamentals) vs the liquidation by hedgies - and it seems both risks are as stated in the discussion rather than one being right and the other wrong... the hedgies are selling out and thus driving the price lower while the users of the metal are buying.. from this I attribute the recent selloff as due to hedge fund liquidation of positions rather than a large fundamental drop in demand .. further, the level at which copper was supposed to start its meltdown because of forced liquidation by hedgies was 30000 per ton .. well, the copper price fell below that level briefly last week (on my data at least) and the feared crash did not eventuate...

In addition, US govt forecasts for the next 12/12 released last night do indicate a slowing but still growing economy, with inflation still a threat but not enough to induce higher rates and possible recession in the usa...

All this is not to say that copper and related companies will not still experience selling pressure from hedge fund
liquidations, but it does say that there is probably value in the miners at these levels. This is also not a comment on the current stock rally in the USA... it does seem to be long in the tooth with low vix and all but maybe that doesn't matter...

Anyway, the recent lows on xjo seem to have tested out our fears and shown them to be largely unfounded, so I think the downside risks from here are minimal for a while.

All of which means othing in terms of todays market action, but medium term I think the market is headed up.

Do your own research!

cheers!