RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Copper On New Levels

Posted 12/06/2017 9:19AM CT | Michael O'Donnell

So far this week, copper has sold off to levels not seen since early October in the March 2018 contract.  Technically, levels at 3.051 and the psychologically significant 3.00 level have been breached as well as a trend line originating from the June 21st low. 

Fundamentally, after reading yesterday’s RJO Market Insights, one may have noted “the surprise 10,125 ton inflow into LME warehouses” as well as “news of a restart in talks between unions and the mining company in Peru”.

What may be most interesting to consider regarding the copper market and other commodities such as lumber, which was limit down yesterday, are their implications to the housing market and broader economy as a whole.  To many, bearish trading in copper and lumber does not bode well for housing and the broader economy given their use as construction materials, thereby gauging demand and growth.

Also, for those who monitor politics, you may consider the recent implications of the tax bill in congress and the market discounting its passage as an opportunity to position in this market and others.

For those who would like to discuss these developments in the markets and others, please contact me at your convenience.

Copper Mar ’18 Daily Chart

Copper_Mar18_Daily_Chart

Michael O'Donnell

Mike started his career in the markets on the floor of the Chicago Board of Trade as a trade checker for a local market maker in the Dow Futures pit. This led to interning with an independent introducing broker and going on to work with a number of market participants including: speculating clients, hedge clients, introducing brokers, futures commission merchants, commodity trading advisors, proprietary traders, trading educators, system creators, and a number of international financial market participants.