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Lack of Bullish Buzz in Metals


With a fresh lower low for the move and the lowest trade since July 12th, the charts favor the bear camp to start the Thursday trade. While there has been a back-up of treasury yields, that negative outside market influence is likely offset by a downside extension and 3-day low in the dollar index.


While the palladium market forged a 3-day high yesterday, the reaction was not indicative of a market poised for significant additional gains. In other words, a definitive “risk on” vibe, significant gains in energy prices and recent evidence of lower mining output from a key producer all failed to spark a noted rally. the platinum market does not appear as if it is benefiting from signs of improved physical demand and prices have not shown resiliency in the face of strength in palladium, and crude oil.


While the copper market missed out on the big picture broad-based “risk on” recovery throughout commodity markets yesterday, and that should be troubling to the bull camp, the market has regained its footing this morning off a global risk-on environment. Certainly, news that China plans to auction 30,000 tonnes of copper from state reserves next week, makes it clear the Chinese government is serious about holding down key input prices to their economy, but copper now appears to have gotten beyond that event in good fashion.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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