Copper has been on a tear with 13 straight days of gains, the most since 1988 and making fresh two year highs overnight. It’s no surprise that Chinese demand has had much to do with this run up. The one thing to consider is that with this election, Trump has promised to invest heavily in American infrastructure which would be directly tied to copper demand and could paint a longer term increased demand picture for the market. Recently, the Chinese trade balance numbers have been soft at best. The market might be propping up the trade with the fact that LME stocks have been declining, and world demand could be considered more in play than China at this point. The market seems to be discounting the Chinese and looking for fresh news out there. The trend continues to be up longer term, however, I view this as an unsustainable rally and see a slight pullback to relieve market pressure. Right now December Copper is trading at 2.46. Looking at it from a technical perspective copper needs a correction to the 2.30 area before taking off. I can see a correction taking place even if only slight, in the next few days. I am recommending shorting 1 Dec Copper anywhere from 2.40-2.45, with an objective of 2.30. A total profit of $2,500. This represents a 10 cent move to the downside with every penny moved representing $250. For more information on trade opportunities in the metals markets contact me at 312-373-5383.
Market Strategist II
Josh began his career in May of 2013 after graduating from Purdue University, West Lafayette. He received a degree in Agricultural Economics, with a Certificate in Entrepreneurship. He started at Paragon Investments in Kansas, the heart of wheat country. While working there he developed long term relationships with corn, soybean, and wheat producers, speaking with them on a weekly basis. His goal was to market their physical production more effectively through tracking basis, as well as hedge their exposure in the grain and cattle markets through a variety of futures and option strategies. He then moved to Florida to work for PFL Petroleum, a physical biofuels brokerage, and gained significant exposure to OTC and physical energy markets. Trading has been a passion from day one of his career. In his free time he stays active in downtown Chicago, attends sporting events, and holds an FAA Private Pilot’s License and flies Cirrus and Cessna aircraft regularly.