Credit-tightening in China may bring CU down
Copper Chart - from below
"JP Morgan Chase & Co. (NYSE:JPM) has bought up vast supplies of copper, indicating it may soon start a copper ETF. JP Morgan Chase & Co." ... Is this an etf bridge too far?
CU / Copper versus China etfs: FXI and HK2823 ... update
Ratio : Copper to FXI ... update
The ratio is back near 2008 highs.
The recent jump may be a reaction to the reported "short squeeze" by JPM
As JP Morgan shorts silver, they suddenly go long on copper .. December 7th, 2010
JP Morgan has been busy lately in the metals market. On Sunday it was discovered that they were the mystery buyer of over one billion pounds (monetary) of copper on the London Metals Exchange (LME). This purchase represents over 50% of the total amount of copper stored in London, and is a direct threat to cornering the local market for this commodity.
In an article * today from the Wall Street Journal, details and revelations of this purchase were brought to discovery
. . .
Here is the reality. Silver is global, as is copper. Since JP Morgan remained unnamed as they made their purchases, this probably means they have established their balance before anyone else, and will be selling as sheeple investors follow suit. With silver, JP Morgan is on the precipice to be forced to cover their shorts as the price continues to rise, so the ceiling for silver is still quite high.
Never follow the big boys unless you can get in at their price. More often than not, you will be the one paying their profits as they sell you their wares which they got much lower than you did.
*(The bank bought the copper mostly on behalf of clients, according to a person familiar with the matter, so it doesn't directly own all the metal. But the buying spree does leave a large swathe of copper in the hands of one bank and its clients.)