Copper, monthly
Summary
Suffice to say, the decline in copper is getting increasing attention, and I most certainly believe it is a major warning of trouble for the broader US/world capital markets. Yes, it is just one commodity, but as an economic indicator, it is second only to Oil.
Deflationary bears should continue to pay close attention to how Copper closes the month. As it is, further declines seem very likely, and any monthly close <$3 should clarify the trend for the next few months.
The weakness in copper should especially be seen as a severe warning to the Gold/Silver bugs. If Copper falls to the low $2s, then I'd be looking for Silver $15, and Gold $1000.
Looking ahead
Again, there really isn't anything major due tomorrow. Just the EIA Oil report and the US treasury budget, but Mr Market usually has little interest in those.
*next sig' QE-pomo is not until Thursday.
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Goodnight from London