Take physic, pomp

Chart of the day is……..

…..lead (Pb), six month price chart.

I could have chosen to feature copper again today, as the move to over $1.70/lb is eyecatching. As for Pb, it was a toss-up whether to look at a shorter timeframe or longer timeframe chart, so I kinda compromised with the six month period that shows both the dropoff in 2008 and the recent sniff of optimism that has put Pb at $0.60/lb today.

I’m not buying this upmove in base metals and think they have to drop again. It’s not something I want to say but do feel compelled to say it. The recent moves are not demand-based but a combo of monetary playfulness and slightly lower LME inventory numbers (totally understandable when one considers the supply crimp from mine closures that really took hold around December). The bottom line is that until I see true end-user demand picking up and not just technical adjustments inside the market, I’m a whussy coward on BMs on general. DYODD and you’re very welcome to disagree. This site is not one of those neverwrong BS merchants.

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