It is true that all commodities now a days are priced in US Dollar. Logically one can deduce that if US Dollar rises then certainly commodities prices would fall. However it seems that the relation is not all that linear as one might think. Actually a correlation study from Jan 2006 to Oct 2015 shows … Continue reading
Interesting Correlations
Performing a simple correlation study on various indices and the group of LME Base Metals, I have noticed a particularly interesting relation between European stocks, (English FTSE (.FTSE), French CAC 40 (.FCHI), Eurostoxx 50 (.STOXX50E) , Italian Index (.FTMIB), Swiss Market Index (.SSMI)) marked in red, and the Base Metals group. Interestingly the European indices had … Continue reading
Outlook into 2016 and beyond: Nickel, Copper, Aluminium, Zinc, Lead
No wonder that that past 4 years from the 2011 highs in most of base metals, have been among toughest years seen in a while. The only good news is that probably now, near term future might look brighter. Most of the metals have been going through a correction that has exhausted not only prices, … Continue reading
Short Term Nickel Update Oct 5th, 2015
Good Morning Traders! It has been a month since our last post! Mainly due to the not so eventful price action. Prices traded in range throughout Sep. In our last post, I was looking for price to tick a little bit higher before resuming larger downtrend. Price did travel higher after the post however peaked … Continue reading
Short Term Nickel Update Sep 3rd, 2015
It has been about 10 days since my last post. Markets have not done anything to surprise (despite sharp declines seen and thereafter reversals). For Nickel after the overnight swift crash from 10400 to 9100 and thereafter recovery to 10600 on August 12 (all this happened when most of western hemisphere was sleeping), I was looking … Continue reading
Quick update on Commodities, August 23rd 2015
We are at critical levels across several instruments. While most world equities have either started a good sized decline or just on the verge of doing so. Commodities still struggle to find their place. Regarding base metals, several signals are pointing to the exhaustion of the long term down trend, indicating a turning point should … Continue reading
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