Robin Bhar
Robin Bhar
adviser base fund locking met metals players profits selling systematic trade volatile
Correction? What correction? With the shorter-term players locking in profits and systematic CTA (Commodity Trade Adviser fund) selling met by trade and hedge fund buying, base metals have stabilized after a volatile 24 to 48 hours.
last market
The ( zinc ) concentrate market is already so tight, this is the last thing the market needs.
falling good points seen stocks warrants week
Everything I've seen this week points to a tightening market. Stocks are falling and canceled warrants are rising, indicating good demand.
certainly difficult happening trend
It is difficult to know what is happening -- it may be profit-taking, but it is certainly not a trend reversal.
below continue copper critically deficit forecast four industry levels low market next past ratio remain stocks strong three weeks
Furthermore, with the market in deficit for the past three consecutive years, industry stocks are below critically low levels and the stocks-consumption ratio is forecast to remain below four weeks over the next three years and should continue to underpin strong copper prices.
bring due funds good likely money month performance prophecy
Funds are still keen, with the end of the month likely to bring even more money to commodities due to the good performance they've had during January. It's a self-fulfilling prophecy at the moment.
appearing base circle feed metals precious remain strength virtuous
Base and precious metals remain in a virtuous circle with each appearing to feed off the strength of the others.
both desire exposure funds seem
There does seem to be a desire to have exposure to commodities by both long-term funds and speculators.
ball flow game
We are in a new ball game - a new paradigm. You just have to go with the flow now.
amount attracted buying fund money structured virtue
An unprecedented amount of new fund money has been attracted to the LME by virtue of index buying (commodity indices) and structured products.
although expect quite
The way they are going, it ($600) could come quite quickly, although we should expect to see some profit-taking.
forcing grip investors market metals precious prices tight
Speculators and investors have the precious metals market in their tight grip and are just forcing prices higher.
against buying rise
Against this background, speculative buying underpinned a rise in prices.
chart closes further price selling weekly woods
We may not be out of the woods yet and further liquidation and selling could be lurking. Tonight's weekly chart closes will be important in determining near-term price direction.