No Mercy ! May 10th, 2019 by John Gross
There wasn’t much benevolence bestowed upon our markets last week, and unless something of a miraculous event occurs, things may get worse before they get better.
Copper, aluminum, lead, nickel, and zinc all fell through their respective support lines, and tin is teetering on the brink.
Likewise, precious metals have either fallen below the line, or are skating on thin ice.
And there isn’t much to cheer about in energy, or equity markets either.
Indeed, a most unfortunate turn of events.
Last year at this time, we were singing the praises of copper, as it looked like ‘all systems go’. Inventories were falling; prices were rising, and the outlook was positive for a variety of solid reasons.
But then the trade war commenced, effectively putting the kibosh on most metals.
Over the past few weeks, however, a number of high profile types voiced encouraging comments, leading us to believe a resolution to the trade troubles was near. But alas, it was not to be, as the divide widened further, rather than the right middle ground having been found.
This is most distressing, as we could be staring into the abyss, unless or until there is a meeting of the minds.
Nevertheless, we’ve said it before, and we will say it again, and again – If in the event copper prices fall further, it will be to dig a deeper and stronger foundation for the next major move higher.
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