In This Issue
Cascading downwards in search of a floor
Having crashed through the Sentiment Oscillator support line that could have been been the turning point, the market is now cascading lower in search of a base. Sellers dominate the market and buyers are being swamped as market dynamics are overpowering any fundamentals.
The copper price has fallen out of bed since May, falling 20%. However, as the chart below demonstrates, aluminium, nickel and zinc are not that much different in price to a year ago (A$). The media has picked up on the copper price falling, telling everyone it means bad times are coming. Maybe that helps explain the sentiment, along with the gold price that is falling in both US$ and A$.
No-one seems to be talking about a strong Chinese economy any more. It is all about how strong the US$ and the US economy is looking. This perspective will continue to be the main thematic for a while as it sucks money away from commodities and emerging economies, back to the US.
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