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Deflationary Tone in Copper


The overall environment facing the copper market today is bearish with a slight deflationary tone flowing from Chinese price data, rising concern that many areas will be forced to return to lock down and almost no hope of a US stimulus package prior to the election.


With a risk off session underway throughout the world, US infection counts reviving concerns of shortages of PPE and the dimming hopes of a US stimulus package almost all commodity markets are understandably showing deflationary pressure.


While the palladium market managed to bounce from this week’s low in yesterday’s action, we see that recovery as a “temporary bounce” in a bear market phase. In retrospect, the bull camp saw its “dream story” of surging Chinese car sales earlier this week and in turn prices fell out of bed. The charts in the platinum market are easily the most bearish within the precious metals complex with the market failing to breakout above its 21-day moving average following 6 attempts in the last 13 sessions.


Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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