RE:RE:RE:Technicals...Cognition777 wrote: Ahh... I think you are confusing your opinion with facts... or perhaps you're confused with what technicals are used for.
Someone on this board, perhaps yourself, said that copper trades on the fundamentals of supply and demand and nothing else. I would agree that any market is "fundamentally" driven by supply and demand of the goods or services sold in that market; but there is an equally critical component to consider when entering the market, and that is the "optimism" or "pessimism" of the buyers and sellers.
Just like Fundamentals are used to report the balance of "supply and demand", Technical signals are used to guage the balance of "optimism and pessimism".
Charts merely reflect patterns of price action over any given time frame. If fundamentals are the only component in pricing, then, over time, the supply and demand charts would always look like the price action charts.... AND THEY DON'T.
There are times when the technicals ("optimism" or "pessimism" of the market players) are influencing the price action more than the fundamentals ("supply" or "demand" factors). Why would an investor ignore that?
Technicals apply to any market or individual stock as much as fundamentals do. I would suggest that ignoring technicals leads to just as many poor investment decisions as ignoring fundamentals does.
Obviously, the best option for long investors is when an optmistic market is met with supply constraints; and short investors prefer pessimism and gluts. The tricky mix is when you have optimism and too much supply (or vice versa)... that's when it is most important to take both fundamentals and technicals seriously ...
In my recent posts, I was merely highlighting that there may be a shift in the fundamentals from growing supply to dwindling supply; this fundamental change just happened to also be reflected in the technical signals which showed a corresponding switch toward optimism.
Now take a look at the actual stocks that deal in copper ... you'll see that the switch that took place in the copper chart has not been reflected in the company share prices in the last two days ... HENCE, MY CAUTION. The copper chart change has not affected the optimism at the producer level... there is still caution (or at least lethargy) in the copper producer space.
blah blah blah from you friendly "sterile" "primate"
The technicals certainly have their place in overall trading habits of the entire market. Momentum traders that brought the copper producers to their May highs left and haven't come back as of yet. Hence, spot copper is up a healthy 15 cents US in the last two days and share price has barely budged...for all copper producers. It is a bit odd that some momentum hasn't returned to the space with these elevated prices but it's bound to happen soon IF copper prices stay elevated.