Thursday, May 13, 2010
Copper has not done what I expected; it has essentially stayed flat. I will be dumping my three short positions on today's open. Just not sure where to go from here; my thinking is that everything is pretty much stuck in neutral after the Euro bailout. I'll move my two copper purchases from $3.26 to $3.33 and also put in a "sell" order for two copper at $3.03, both of which again have five cent stop losses. My thinking here is to "catch the wave" when it comes, be it either up or down, and at this point I've got no earthly idea which way it's going. So far the Euro bailout is doing exactly what it was supposed to do, namely calm the markets. My thinking is that ECB purchases of Greek, Portugese & Irish debt has done a lot to calm the markets; the ECB won't say how much they've purchased but my thinking is that it's a fairly large amount. This will sink the Euro; I can see the Euro at $1.10 by year's end. In addition to the one short Euro at $1.245, I'm going to short another at $1.195. The central banks won't let the Euro crash, but a slow slide is definitely in the cards.