Daily Speculations

The Web Site of  Victor Niederhoffer & Laurel Kenner

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The Chairman
Victor Niederhoffer

10/13/2004
Metals Meltdown

Yesterday's shocking decline in copper is a pilot fish, reminder, and cautionary tale. What deep, dark secrets and impact such a move must have had on the producers, traders , and users involved in this most basic of international commodities. "Yesterday's decline took copper prices below their one-year rising trend, according to technical analysis charts used by some traders to predict price moves. A line drawn through a one-year chart of copper prices and touching all of its low points suggests the price would have been supported at about $2800.... Metals prices have been forced to unrealistically high levels by short covering of speculative positions and a recent bout of fund buying amid a background of strong global demand," said John Meyer, an analyst, according to an Oct. 14 Bloomberg story. Apparently the worst-selling book Practical Speculation did not have much impact on the above story and/or Jack Finney's people have made substantial inroads in computers.

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