Tuesday, December 19, 2006

Shorting Copper for the first time

Selling some Copper. This is my first time in this commodity, and I'm entering it as I was reading one of Mish's blog posts, and it got me thinking.

Very interesting chart also, looks like decision time and could break lower, with much lower long-term support. Plus I believe in a continued US housing slowdown, and also the price of copper and other commodities are significantly higher than in the not-so-distant past, and so there will be plenty of companies out there trying to increase mining and hence increase supply. At some point extra supply will come on line, probably at just a time when the market doesn't need it!

Let's put on a small position and look for a 40 point break lower. Selling Mar '07 future at 301.20 in £1/cent, which should make us £4,120 if we can get it back at 260.00. Let's have a good think about cutting if it gets to 315.00.


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