Big Red brought out the big guns last week, with another 10.45¢ gain, and notching its 13th consecutive daily advance since December 5th, for a total of 29¢, or +10%.
We would like nothing more than to say we saw it all coming, but that would be somewhat less than accurate. In reality, though, we are still somewhat puzzled by the strength of the move, prompting a call to my man Mark out there in “Cactus Country,” Tucson AZ, otherwise known as the Copper State.
“Mark, you’ve been around copper for what, about 65, or 70 years now, what the heck is driving the market up”? True to form, Mark did not miss a beat when he said almost in a whisper, as if he were keeping a deep secret – “More Buyers Than Sellers.”
Duh . . .Of course, why hadn’t I thought of that. That guy Mark, he really knows his business. I guess that’s why they pay him the big bucks.
But copper is not alone in moving higher, as this week’s report clearly illustrates. In fact, when you go through each of the nonferrous charts, note that all held recent support lines, with most not far from testing their highs. With the exception of tin, it has indeed been a very good year for industrial metals.
Precious metals did reasonably well, as they are all in positive territory this year, but palladium stands alone, as is still “reaching for the stars,” with a better than 50% gain. All in all, despite some pullbacks along the way, and brief periods of doubt, the bull market that began two years ago is still running.