At the close of the markets in New York each day, I look at the overall picture to see what features jump out at me on the charts. This was certainly the case after the close of their day on Friday. Metals a bit weaker – until I saw the LME. Wow – copper – I knew as soon as I saw the price what that would do to my chart – N-I-C-E. Was certainly the bright spot in Friday’s trading. This is very encouraging because as I have mentioned a couple of times, I felt there might have been a slight increase of buying in our mining stocks a bit further down the lists other than the big two which have been carrying the load recently. Mind you, I must say S32 seems to be trying very hard to make it the “Big 3”.
A new all-time high close in the Dow . The S&P was at a new all time earlier in the session but came off sharply towards the close. Overall not a very impressive day.
LIT the New York lithium ETF has broken its downtrend of the past six months. However, it has got a bit overbought before it could finally achieve this important point. If it can just come off over the next few days without meeting too much selling, we could finally see a recovery in this market. I have pointed out a number of times over recent months that I felt that we wouldn’t see a turnaround in this market until the most discussed stocks featured on Hot Copper were not lithium. There are still a number of “rusted on” holders but I have noticed a couple of the posters have lost interest just when we are starting to see a little timid buying in this beaten down sector.
And our crazy friends in currencies – with the US dollar little changed, they decided today that it was the day to sell the pound which benefited the London FTSE. There just never seems to be an idea in the currency markets that lasts for more than a day at the moment.
Gold finished slightly weaker and silver has managed to go sideways out of its downtrend. I would prefer a nice clear break but will have to see what it can do from here. But….those Commercials in gold that I keep mentioning, they are net long and don’t forget this is the first time since 2001 that this has been in the case and as I keep saying, in my view, they are the ones that always end up being the winners.
As suggested earlier, our market was supported again by the big miners with very little happening in the banks and other than what I see as a bit of new buying in some of the miners, nothing much else of significance. XJO has been in a sideways band again – already the case for twelve trading session.
The horrid situation with strawberries cannot be ignored even on Hot Copper. I must say the best suggestion I noticed was from poster @Tony barber – Strawberry daiquiris – and don’t worry about freezing the wizzed up strawberries just for summer cocktails – can vouch for them being just as delightful in spring!!!
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