Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (72520)	12/18/2007 3:04:05 PM
From: NOW	Read Replies (1) \| Respond to of 116555

homes are still going up?

To: Steve Lokness who wrote (72520)	12/18/2007 3:27:29 PM
From: sea_biscuit	Respond to of 116555

Copper, zinc, nickel etc. prices are volatile and are inversely correlated to how much stockpiles have been built. If the stockpiles get too high, then prices go down even in the face of robust demand. But it will have the deflationists jumping up and down. For a while.

To: Steve Lokness who wrote (72520)	12/18/2007 3:55:51 PM
From: sea_biscuit	Read Replies (2) \| Respond to of 116555

Again, excellent points Steve. Btw, here is a news item for today - wheat prices breakout and exceed $10 for the first time ever. bloomberg.com Deflation! Peflation! LOL

To: Steve Lokness who wrote (72520)	12/18/2007 4:28:26 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 116555

You are looking for the exception and making a case for something that is just not in my world... Kinda like being able to buy frozen hamburgers at a discount and then using that to make the claim that bread, milk, and produce prices have gone down! ;-) This is what Zeal LLC said in an article in Nov this year : Coming off lows from the early 2000s the base metals have all entered into strong secular bull markets. And supported by smashingly bullish global fundamentals, the base metals technicals reveal a highly volatile yet lucrative market for speculative traders to relish. Because of the wild volatility of the base metals markets, it is awfully difficult to discern any reliable technical trading patterns. But the technicals have shown us that whether the base metals are experiencing orderly uplegs or sharp parabolic ascents, their prices are ultimately strong and resilient. Even sharp corrections to blow off speculative exuberance still leave base metals prices at historically high levels. And now five-plus years into the base metals bull markets, it is apparent that fundamentals are the key foundational drivers of today’s technical market activity. Speculators indeed contribute to daily noise and cyclical extremes along the way, but these charts prove that the global dynamics of these commodities have drastically changed. The natural resources required to grow the global infrastructure build-out are truly hot commodities. [...] Even though base metals stocks have had incredible runs thus far, the good news is the party is not over. This bull market should last for another decade or so until the current supply/demand imbalance is reversed. And the mining companies tasked with building more mines and growing supply have quite a job on their hands. [...] The bottom line is the base metals technicals show very strong secular bull markets in each of these metals. These commodities have exhibited amazing uplegs that have vaulted their prices to historic highs. As consistently-increasing global demand continues to outpace supply, these bull markets should continue for many more years. These technical charts have shown us that the base metals are very sensitive to fundamentals and because of their relatively small markets are vulnerable to wild speculative swings.