Posted on 09/28/2011 10:15:25 PM PDT by blam
Copper Telling You China Much Worse Off Than You Think?
Published: Wednesday, 28 Sep 2011
By: Lee Brodie
In a volatile market like this one, you can’t afford not to examine every development. And this one isn’t good.
In fact, if you’re bullish it’s kind of a one – two punch to the gut.
On Wednesday, materials [XLB 30.451 -1.409 (-4.42%) ] led the market lower as investors worried the crisis in Europe could catapult the world into global recession. Considering materials propelled the market to bull market highs earlier in the year, the poor action in this sector is particularly worrisome.
HG COPPER DEC1(HGCV1)
3.1995 -0.047 (-1.45%%)
CEC:Commodities Exchange Centre
However, that’s not the worst of it.
Our pros were more concerned about the action in copper [HGCV1 3.1995 -0.047 (-1.45%) ] sometimes referred to as Dr. Copper because its moves can often be used to diagnose the health of the market.
And Dr Copper’s prescription is painful. The red metal plunged Wednesday on high volume.
To make matters that much worse, the Shanghai composite [.SSEC 2372.31 -19.75 (-0.83%) ] closed at the lowest level of 2011. That’s negative because the world’s second largest economy is largely viewed as a driver of global demand because it needs to build so a vast amount of infrastructure.
According to Tim Seymour the market could be receiving a serious warning. “Copper is a real barometer and it suggests China may be much worse off than people think,” he says. “There are construction problems and a property bust in Asia,” he reminds. Those woes may be coming home to roost.
(snip)
(Excerpt) Read more at cnbc.com ...
Copper ping.
You're catching on brother.
So, how is lead doing these days?
:-)
China has our jobs, our industrial base, and our money.
Wake up.
China’s not ‘worse off’. China is winning. Nobody is doing a thing to stop it.
Even on our side. NOBODY.
China’s environment is beyond toxic in many places and their one child policy is causing to grow old fast.
Don’t think that China is out of the woods.
If the Republicans can get a super majority this election and uses it, they can undo much of the damage the Dems caused.
Aluminum is tanking too.
A lot of the damage was caused by Bush/RINO Republicans. We need more Tea Party Republicans like we got in 2008.
Maybe silver, but there are a lot of people who have an irrational emotional attachment to gold that doesn’t exist for other metals. Gold will tank one day, but it will probably be the last to do so.
“The gold and silver charts will soon look like that, and worse.”
And thus, it will be the perfect opportunity for the “little people” (you and me) to buy precious metals.
IMHO.
I agree with that.
Yeah, I dunno. I think there is (or was) a lot of speculative juice in ALL the commods, but especially the main ones, oil, gold, silver, copper. And of course, the China story has been “hot”. So, without knowing anything and only commenting in hindsight, commods + China = hot + hot. So when the air comes out, it double comes out.
All these things, when they have lots of spec money in them, have a tendency to overshoot on the downside when they collapse, and poorly (maybe I should say “weakly”) capitalized longs give up their religion and want their money. I’ve traded silver for a decade, I can’t figure where the bottom is. There WAS, absolutely WAS a very strong volumetric node at $31 even when it was threatening $50 a few months ago. $31 is sorta where it is orbiting now. Hey, people get tossed out, gather up their nerve, get kicked out, return.
I don’t know if it’s people who are really, really smart, or if it’s more like a dog returning to its own vomit. Is there a big difference? LOL.
If we make it through this October, what makes you think the leftists won’t orchestrate yet another “October surprise” crash for us and the nation next year....especially if they feel the need due to their impending landslide and historic loss in the 2012 elections. You already have Democrats talking about suspending elections.
It’s a good thing people can’t die from uncertainty. The economy’s death is bad enough.
I doubt the Dems would suspend the elections, though I don’t doubt that they’d like to.
All I can say is keep the pressure on, the TEA party is winning.
Shhh. Why let everyone else in on it? ;)
“So, how is lead doing these days?”
Does this mean that ammo may go back down to the pre-ObamaNation prices?
Precisely.
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