Copper May Have to Go Up or Else; Specs are Long
Stuck between stock-market inflation and deflation in China, copper may carry an inordinate burden in 2H to not join 1H's tumbling commodity dominoes. My graphic highlights managed money (hedge funds) net-longs at about 27% of CME copper open interest vs. the average of 7.5% since 2019. Will speculators be right or at risk of a sell-stop cascade in the economically and equity-market sensitive metal, which trades at about 2x the volatility of the S&P 500 but has underperformed for about a decade?
My bias leans to the latter. At $6.22 a pound on Ju;ly 2, copper on the same scale as the rising S&P 500 and falling Chinese 10-year government bond yields may face some position normalization toward $5, especially if the stock market drops. The metal could be at the epicenter of the next cycle in the macroeconomic tide.
Full report on the Bloomberg here: blinks.bloomberg.com/news/stories/t… {BI COMD}
#copper#futures#stockmarket@Bloomberg
In March I warned Apex was heading toward a rug pull.
People called it “FUD.”
Now traders who built up 10-20 accounts and were about to withdraw massive payouts are getting moved to ONE live account with a $3k drawdown while the rest gets shoved into a “Bonus Vault.”
This isn’t scaling.
This is payout compression. 🧵
Apex might’ve just pulled off the biggest cash grab we’ve seen in a while.
New accounts. New rules. Same story coming next: payout denials.
They’re even banning affiliates who speak out - the affiliate program isn’t about partnerships, it’s about controlling the narrative.
If
There are a lot of reasons for concern in this market and it is great to be aware of them but each stock should be managed on its own merits.
Breadth is narrowing- ok, this is why you get stopped out of the stocks not working and continue to hold the ones that work
Volume is declining as stocks rally- Only Price Pays!
Inflation is up- cool, you looking to pass an economics test or make $ in the market?
Oil remains bid- equities don't seem to care.
Bond yields are up- do you trade bonds?
The market climbs a wall of worry.
Focus on risk management and when the market is extended and you have reasons for concern then be on your toes but don't throw your stocks away.
Sit on hands or smaller size on new positions.
Dont buy dips, buy strength after.
Focus on trends and market structure.
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