Wednesday, December 9, 2009

Update 12/9

I took the day off work due to babysitting issues and a nasty blizzard here in Minny and so had a little time to do some homework on copper. There is major support at around $3.14 and resistance is at $3.27.. for the last week, it has looked like it is rangebound between these two technical areas, and so I'm going to amend my order; I will order a "buy" at $3.20, with a four cent goal and a three cent trailing stop. I will also issue a "sell" order at $3.13 with no preconditions.. if it pierces below that level, we could see $2.90 fairly fast.

Update 5pm: Copper ended the day at $3.1235, and so I'm now "short" one contract from $3.13 and as it closed near the low, I expect a lower opening from here..

Also, there are growing rumblings that Greece is in trouble; the interest rates their Gov't has to pay to attract bond buyers is soaring the last week or so; Fitch downgraded them to BBB and their Prime Minister had to hold a press conference to reassure the markets that they will not become the next Iceland. Problem is, that's what Iceland said. We'll see.. at worst, the EU will force a solution on Greece that it won't like, but desperately needs.

Dec. 9 (Bloomberg) -- Former Bank of England policy maker Willem Buiter said Greece may be the first major country in the European Union to default on its debts since the aftermath of World War II. “It’s five minutes to midnight for Greece,” Buiter, who will join Citigroup Inc. as its chief economist next month, said in a Bloomberg Television interview today. “We could see our first EU 15 sovereign default since Germany had it in 1948.”