Monday, March 15, 2010

Copper Bends Again

Bent but not really broken - arguably.

But a few weeks ago - before the earthquake hit top producer Chile - I wrote a piece for MarketWatch saying copper and copper stocks looked bad. Then the earthquake hit and copper jumped up - a lot.

Blame the dollar if you like but today's action is bearish and we may look back on last week's trading as the second peak in a double top.

And for your odd music enjoyment, "Bend It" from 1966. You know there is always an ulterior motive in my blog titles.

7 comments:

Ramu said...

Mike,

Regarding your column today on Barrons. I just have a question regarding trends.

I heard about trend in prices. Rising trend means we should buy and vice versa. Is there anything like trend of breakouts/melt-UP's?

In the last 12 months, there were multiple instances, where we saw a tug of war and the market will breakout to the upside eventually. If u see the trend, its always up. Shouldnt we bet using this trend? Does wall street follow this?

Apologize if this is a naive question.

Thanks
Ramu

forex-cat said...

Good article!!
Interesting analysis.

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forex chart analysis and a cat

bmbull said...

Shanghai Composite setting up for a bearish 50/200 day cross... Seems like they've led the way both up and down on the last big swings.

Quick Takes Pro said...

Ramu,
Not sure of the question. I think we are in a choppy environment so we should buy dips and not breakouts. The rally is a fake (but you wallet does not care how profits got there). Too much risk to chase anything,.

Quick Takes Pro said...

forex-cat
thanks

Quick Takes Pro said...

BMBull,
Had Shanghai in the newsletter Monday. I cannot wait to read, or not read, the press coverage of that event.

bmbull said...

I think 'not read' is more likely the case. I doubt that much will said, especially as US indices continue to cruise continuously higher, without nary a pullback in sight.