zinc still above two dollars. , page-3

re: numbers say zinc looks best Thanks for your fact based posting jharmann.

The important factor for punters to watch will be how resilient zinc is during this immediate period. My expectation is that zinc will recover faster than other metals. This "correction" was across the board and virtually every mining share coped a retreat in price.

Everyone I read (analysts) is still saying zinc is the great white hope for sustained performance in the volatile metals sector.

Here's what Metals Insider had to say this morning (probably written last nightish)

Metals Insider - 13 November 2006
MI WEEK IN REVIEW: Having skipped away from its former stable-mate copper in recent weeks,
zinc was caught up in the red metal’s mini price-collapse on Friday.
It took a lot of the shine off a week which had seen fresh nominal all-time highs notched up on an
almost continuous basis but zinc still ended the week showing a small $10 gain at $4,300 and
there will be no shortage of catch-up buying in what has become THE base metals bull market of
late.

Not Afraid of the Dark
Zinc has built a lot of upside momentum in the past few weeks and that’s sucking in those
ultimate followers of momentum—the CTA systematic fund community.
There were on the buy side almost continuously last week, driving 3-month zinc up from its
previous Friday close at $4,290 to $4,500 at Tuesday’s close, $4,515 at Thursday’s close and an
intraday high of $4,580 on Friday.
There were rounds of profit-taking along the way and some evidence of producer selling in the far
forward part of the market. But in classic bull market style, each minor set-back was deemed to
be a good catch-up buying opportunity for speculator and trade player alike.
25
Even the absence of the LME’s electronic trading system Select in the first couple of days of the
week failed to stem the thundering hooves in zinc and to some extent lead, even while most of
the rest of the complex was hanging limply in the unexpected liquidity break.
Only copper’s late-Friday collapse through its key $7,000 support level damped the enthusiasm in
super-rampant zinc but even the $215 day-to-day slump will be viewed as a positive technical
correction within the up trend, we suspect.

Bull Roar
The market is benefiting from a series of bull drivers, the most important being the daily
evaporation of LME stocks—down another 7% last week at fresh cycle lows.
That’s translating into a tightening of the LME market’s nearby structure. The benchmark cash-3s
period ended last week valued at $53.50 backwardation, the expected monthly roll of one of the
big indices failing to help loosen things up much.
Trading is conducted against a clamour of bull views and prognoses. The research team at
Macquarie Bank is the latest to talk openly of $5,000 being reached but for sheer bull chutzpah,
the best we’ve seen so far comes from Luke Burgess, managing editor of goldworld.com, who
described the market as the “most undervalued” among the LME metals and suggested zinc
could eventually get to $5 or $6 per pound, the latter equivalent to around $13,225.
That’ll take some beating even by the super-cycle theorists but in the interim the bull roar is
deafening. The International Lead and Zinc Study Group’s monthly statistical update is showing a
widening market deficit—281,000t in Jan-Aug—while the authoritative Antaike research house
was quoted as saying the Chinese market alone would be in 400,000t deficit this year.
No wonder there is an almost complete absence of bears in what looks set to become the last
bull market party in the metals town.
As of Friday the zinc price was showing a year-to-date increase of 125%. Just about everyone, it
seems, thinks it can do better than that and capturing the general sense of euphoria in this
particular market, we note that one of our regular London sources has started calling the big
$5,000 level the “short-term” target.

Do your own research - I just read things and don't really know much about the metals market or related shares.