Let’s start in the metals complex and look at copper. Yesterday copper was all the rage regaining the $3.90 per lb. level along with the massive upside breakout in stocks. On Wednesday, copper was sold like it was mined at Fukishima putting in a bearish engulfing pattern on the candle chart and settling below yesterday’s open at $3.84 per lb. If happy days are here again, then obviously people will need copper, so why the selling?
Moreover, they’ll need iron and any worry about a slow down of any size in China must have faded away as the price for 62% Iron Ore delivered to Qingdao broke through a massive resistance line at $144 per ton on Tuesday, one can expect that level to not be breached again to the downside any time soon. A move above the November high at $148.12 would signal a move into the $150′s without too much worry.
Both Brent and West Texas crude were down on the day but again were not able to break through support at $124 and $105 per barrel respectively. Gasoline futures were off $0.01 at $3.34. Again, if the recovery is here, albeit “frustratingly slow” according to Ben Bernanke, and that’s only frustrating if you are a Keynesian zealot, mind you, then why would anyone hit the bids of the grease that makes the economy tick.
Corn continues to flirt with an upside breakout above the 670 level. Like oil prices it will need to move through it’s resistance this week or risk liquidation as the longs get frustrated and the shorts grow a pair. We’ll see.
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