Commodity prices suffer from the yoyo effect caused by the over financialisation of derivative markets. This creates massive disconnects with economic fundamentals and huge volatility. A traders paradise if you like. There is only one rule that I can trust when dealing with commodity markets and mining stocks........ buy stocks in good mining companies when the underlying commodity price crashes and sell vice a versa.
My sentiment reflects similar to what Eshmun posted coz one of these days alice..... the shorters will be squeezed.
Cheers
Commodity prices suffer from the yoyo effect caused by the over...
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