took this blurb from Ivan Martchev in an article on Seeking Alpha (www.seekingalpha.com), a great resource for financial information.. Take it with a grain of salt as many other articles I have read have the opposite conclusion. Original article can be found here: http://seekingalpha.com/article/4035510-another-vinny-gambini-moment-hibor-market?app=1&auth_param=1doc9u:1c79ll1:d2058642d71cedd2032dd91f58adc671&uprof=45&dr=1
Mind Dr. Copper
The surprising Republican victory created a "Trumpnado" in more than one market, from bonds to stocks to currencies to commodities. But one market where the Trumpnado is just a short squeeze is in copper.
The reason is that the Trumpnado was supposed to be driven by expected Trump policies that would affect the demand for commodities, driving up demand for capital and maybe creating higher inflation. I have not heard a thing along these lines coming out of the upcoming Trump administration, or the President-elect's infamous Twitter account, that is anything but bearish for copper, which is why I think the short squeeze in copper may fizzle out and we will make new lows in the commodity market.
The reason is, you guessed it, China. As the #1 consumer of copper, China is mired in a deflating credit bubble exacerbated by a verbal war with the President-elect over a possible trade war. If there is no trade war with China, which I hope will be the case, I think the price of copper will decline based just on the deflating credit bubble in the Chinese economy. If there is a trade war, the price of copper will decline faster.
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