An Update On Copper
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/l9D4WDoax8M/16895Posted on Wednesday, May 20th, 2009 | In Market Commentary
Contributed by: Rick Pendergraft (http://www.contrarianprofits.com) -
Back on March 2, I wrote a bullish piece on copper and detailed that the price had stabilized and that the bearish sentiment was over the top at that time. Copper has rallied nicely since then, so I thought it would be a good time to update you on my view.
Looking at the chart of the Commitment of Traders on copper, we can see that some of the bearish sentiment has been burned off, but it still has a long way to go. So far the large speculators have gone from having a net 27,000 contracts shorted to having 19,000 short contracts. This barely gets the net short position above the 22,000 shares that were being held short during the last bottom in 2006.
We have seen the price of copper rise from $1.25 to $2.10, but from the looks of the sentiment towards copper, the bull market in copper is far from over. I would think as long as the COT shows a net short position from large speculators, there is room for copper to rise and we could see copper over $3.00 again before the end of the year.
Source: An Update On Copper
Last 5 posts by Rick Pendergraft
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 About Rick Pendergraft (http://www.contrarianprofits.com)
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