Copper direction
In the short term let us keep an eye on the LME inventory; if there is a draw-down of stack, it means the Chinese traders keep buying more copper either because they anticipate that at some point demand in China will pick up, or the Rambibi , their currency will depreciate against the $ and they will be able to sell their stack at a profit due to currency differential between the $ and the Rambibi. Last time I checked on the LME inventory, it went down by 2500 tons to 149000tons, a good sign that the draw-down continues. If the inventory in the LME reverses and starts going up, that means the buying from the Chinese or other traders has stopped and that is a cause for worry and most likely selling of the metal will accelerate. For the long term investors, probably there is not an issue, but for the late comers, will most likely be in a loss position till the fundamentals change. GLTA