The question is who is right, the copper price or the owners of...

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UmiTrader

3,541 Posts.

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06/07/18

09:57

Post #: 34179831
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Originally posted by redbacka ↑

Overnight:

America was back (sort of) after the 4th of July Holiday. It was a full day of trading but volume remained low, as it probably will in Friday’s session. Traders who were back in action were in a positive mood.

Dow Jones 0.75%. SP500 0.86%. Nasdaq +1.12%. Russell 2000 1.15%.

Dow Jones:

DJ remains in a small symmetrical triangle nested above the 200-Day EMA. These can break either way but typically in the direction of the prevailing trend, in this case, downwards.

All four indicators are, however, on buy signals, so it is probably OK. I’d still like to see a long yellow candle with a flat bottom on the Heiken-Ashi Chart before committing to the upside.

I’ve been following the Dow Jones recently because it’s been the laggard. If the big blue chips can’t rally, then the American market is in strife.

Commodities:

Plenty of action in Base Metals last night, down 2.26% on heavy volume. That looks like a wash-out action. Copper Futures (not shown) were down -3.12%. Copper Miners ignored the big fall in the Base Metals and eked out a small rise +0.17%. That also suggests we’ve seen a low in Copper (and Base Metals). Energy up +1.14%. Gold up +0.34%. Iron Ore -1.3%. That’s a seven-month low.

BHP was flat -0.04% in New York last night. Rio was up +0.52%. So the big miners were unfazed by the falls in Copper and Iron Ore.

Expect our miners to do better today than yesterday. So long as the banks play ball, we should have a strong day today.

RB

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The question is who is right, the copper price or the owners of copper equities? I am not sure I want to take sides, so selling my mining shares for small loss of value seems prudent. I can easily buy them back. They were a similar price when copper was $3.30.

I listened to US Commerce Secretary Wilbur Ross describing how within WTO rules there is no mechanism to equalise tariffs. As you know the US has the lowest tariffs and wants trading partners to match, but the trading partners naturally prefer the stars quo. It looks like Europe will negotiate, but China doesn't want to. Threatening via state controlled media, and asking the EU to gang up against the US is not smart IMO.

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