Dear Reader,
You should know that MysteryHedgie is:
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A real guy, and
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Not me!
MysteryHedgie’s a dear friend and a gifted macro trader. It’s a good thing he’s posting, because we’ve been so busy launching our fund and moving our offices (all at the same time), I haven’t had any time to post!
Of copper, he writes:
Copper…..often referred to as the metal with a PhD in economics, has been rangebound for the past two months… In similar fashion to our 9/2 call that the gold price standoff was about to end with an upside burst, we think copper prices will break their range in the coming days (see chart).
Different is that we are unsure of the direction; higher tells us that the massive government stimulus of recent months could engender enough “animal spirits” to continue rallying assets generally, lower says that the bounce in global demand and confidence has run its course, the “square root” recovery scenario. As asset price volatilities have subsided generally, we see copper regaining its place as a savvy economic forecaster.
Range Bound Copper
