Copper Popper
New York copper, closed since last Wednesday, is rallying and digesting global
events after a five-day holiday hiatus from trading. The London Metals Exchange rallied
last week on a net movement of copper out of warehouses. The proclamation by G.W.
Bush that he is the next president of the US is also benefitting copper, as
traders believe the economy will perform better under a Bush administration.
Copper gapped above its 20-day moving average this morning, and has continued
rallying off its opening print, currently up 1.95 to 84.05. This morning’s
Pre-Opening Metals Outlook also pointed out events in Asia that are
effecting the market: The combination of a higher equity market and
positive stories from China on demand should be enough to forge a bottom in
copper. China evidently bought copper on the Shanghai exchange. Supposedly small
to medium sized Chinese end-users were active!
Foreign currency futures are moving up strongly against dollar index futures
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PowerRating). Traders are hesitant to short the euro on fear that the European
Central Bank may intervene to continue propping up the single currency. The yen,
British pound, and euro Fx, all hit 10-day lows Friday, and the Dec. Swiss franc
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PowerRating) is making good on a Turtle Soup Plus One Buy
signal. The DX is going the other way and making good on its Turtle Soup Plus One
Sell setup.
In the softs, March sugar
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PowerRating) is extending a week-long rally and
orange juice
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PowerRating) is popping out of its flag pattern on a wide-ranging,
outside day formation, a constructive pattern.