Copper limit Down in Full Crash Mode, Commodities in Peril
Commodities / Copper Mar 10, 2014 - 02:27 PM GMT
DBA has just completed a 65.6% retracement of its previous decline. This is a typical bear market rally propelled by shorts having to cover. This is why shorting the market can be a zero sum game, if profits aren’t taken early. On the other hand, this presents another opportunity to short agricultural products. The decline may be breathtaking, as DBA goes into a Primary Cycle decline.
Investing.com - U.S. corn futures fell from a six-month high on Monday, as investors readjusted positions ahead of the U.S. Department of Agriculture’s closely-watched monthly supply and demand report due later in the day.
On the Chicago Mercantile Exchange, corn futures for May delivery fell to a session low of $4.7888 a bushel. Corn prices last traded at $4.8038 a bushel during U.S. morning hours, down 1.65%.
Copper is yet another example of a commodity going into crash mode. It is difficult to say whether it is going into Wave 3 of (3) yet, or not, but the decline should be powerful, nonetheless.
ZeroHedge comments, “It would appear the fecal matter is starting to come into contact with the rotating object in China. Worrying headlines are beginning to mount on the back of real economic events (an actual default and a collapse in exports):
*COPPER IN SHANGHAI FALLS BY 5% DAILY LIMIT TO 46,670 YUAN A TON
*CHINA YUAN WEAKENS 0.46% TO 6.1564 VS U.S. DOLLAR
*YUAN DROPS MOST SINCE 2008
The Pre-market is down, but not convincingly yet. I won’t be available to comment during the day, so use your better judgement. The Orthodox Broadening Top won’t be triggered until it breaks through the lower trendline at 1825.00. The trading bands are narrowing, suggesting a big move ahead, but it may take another day or two to set it up.
Regards,
Tony
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