As we have been reporting on for many months now, the melt in Dr copper–economic barometer to global growth–continues to fresh lows this morning. Now at 2.08 and well below the 2.75 support range (green line below as charted by my partner Cory Venable in October 2014) there is little to buoy price between here and the .95 to 1.50 area (purple band). And that would be the top range of previous expansion cycles. The bottom of those cycles was in the .67 a pound range. And this latest cycle has been dominated by unprecedented manipulation, stockpiling and mal-investment in the space thanks to runaway financial intermediaries. For a refresher watch: Are the markets rigged? Stay tuned. Also see: Taking a good long look at Dr Copper:
At the same time, price fixing and illegal manipulation by ‘market makers’ became a widespread practice across a range of asset markets. As a result, over the past 4 years, even as global demand weakened and copper inventories piled up, copper prices– historically monitored as a global growth barometer–managed to magically levitate north of $3.00 a pound.