Happy Days Are Here Again?
Posted on 11/13/2016 7:30:00 PM PST by blam
Investing Haven
November 12,2016
We have covered the copper market extensively in recent weeks. As the price of copper has truly gone balistic this week, it justifies another commentary with our view on where exactly copper stands, and where it can go from here. In other words, is the copper price forecast that bullish that it suggests a new bull market has started in 2016?
MarketWatch is one of the few media outlets that provided some (positive) coverage on copper today. Their article implicitly suggests a bullish copper price forecast for the remainder of 2016: “Copper futures, meanwhile, saw a weekly climb of nearly 11%, which was the largest in over five years, as traders bet that policies expected to be pursued by Republican Donald Trump’s administration could feed demand for industrial metals.” Though fundamental data, as brought forward in their piece, does not carry too much value in our opinion, we agree with their viewpoint.
Copper price heading towards a new bull market in 2016?
In our copper price forecast for 2017 we made the point that $2.10 was the line in the sand. Since then, copper respected that price level. However, we never expected to see such a strong rally in such a short period of time.
At this point, copper is flirting with a new bull market. If, and that’s a big IF, the $2.60 level can be cleared, we are convinced that a new bull market has started, and our copper price forecast will have a very bullish tune for 2017.
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
DEFINITION of 'Doctor Copper'
"Market lingo for the base metal that is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper. Generally, rising copper prices suggest strong copper demand and hence a growing global economy, while declining copper prices may indicate sluggish demand and an imminent economic slowdown."
Happy Days Are Here Again?
Watch for an upsurge in crispy critters made from thieves trying to steal energized railroad caternary.
Darwin will strike again!
Wild
A year and 1/2 ago I bought dozens of Eagle Copper Rounds to celebrate my grandsons Boy Scout Eagle Ceremony and give to all the scouts attending that night.
Last month I bought the same number of Lincoln Rounds to fasten on thank you cards to “Volunteers for Trump” and the Party of Lincoln. The Liberty Bell Round was available at that time too...hard choice.
It is nice to see them go up in value as well as just “lucky” pieces.
I did not research trying to sell them, since that was not the idea...now I may do that! They are easily affordable.
Leading indicator.
I hope so. I have tons of stock in Southern Copper (SCCO).
I do not think so. The default rate from Sept. to october was up 26%, the highest since August 2007, just before the subprime meltdown.
Demand and current supplies simply don’t justify a bull market for copper if what I have read is accurate.
Trump putting the Meth Freaks back to work.
Don’t let the recent gains get away from you. 18 month high.
And I was getting ready to ask for a copper roof for the house.
Oh well.... steel is nice too.
My prediction. Copper could go higher and after stabilizing could go lower. All the while fluctuations in copper prices could bring costs higher as well as lower.
Buy my book.
I got poked in the eye. 3-4 weeks ago I purchased 100# of 16 oz flashing at $4.95/lb. I realized I was going to need more this weekend; it’s $5.60/lb now.
Looks to me as if someone is trying to talk it up. There is no fundamental reason for any industrial metal such as copper to be spiking upward. Economic indicators are weak, demand is not strong. Individuals jumping in should be very wary, imho. The price has already been run up, now they’re looking for patsies to buy into the selloff so they’ll maintain their profit. Then it tanks.
Steel is very good. I put a steel roof on my house in 2003, and never regretted it.
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