Tuesday, August 2, 2011

Dr. Copper Continues to Yawn at Economic Worries

With the US equity markets down and sharply for 7 and 8 consecutive days depending on the index, Dr. Copper spent the start of yesterday in record territory above $4.5. Outside a week in February, the initial trading yesterday equaled the highest prices in history signaling a very bullish global economy.

Sure the BHP mine in Chile that is the largest mine in the world has been shut down by a strike for 12 days now, but I doubt that would matter if global demand was about to slump? Definitely worth watching the rest of the week. The equity markets are extremely oversold and any bounce in them could spring copper to all time highs above $4.6.

Can copper hit record highs with the US heading into a recession and China facing a hard landing?



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