Sell your copper stocks, and buy them back in February.Go to...

Sell your copper stocks, and buy them back in February.

Go to kitcometals.com or the LME website. Look at the 5 year LME stockpile chart - each september to november the stockpile grows significantly over the northern summer as the ice-bound mines get to export their metal to market and as China cuts its purchasing and depletes its domestic stockpiles while letting LME stocks rise and LME prices fall.

This has been a pattern for the past 2 years, maybe 3. It is liable to repeat itself this year again.

The build in LME stock will get to 250Kt of Cu, and prices will probably come back to around $2.80/lb or so. Then in February, the Chinese will aggressively begin buying, and winter will be in full force, choking supply from ice-bound northern hemisphere mines in Canada and China's mountains. Stocks will fall and prices will rise.

So sell now, and buy back Jan-Feb or march at the latest, for the next leg up.

If you also look at the 5 year Cu rice chart, we are still well within a long term upward trend. Look to see whether this maintains till Feb-March.