Time for Long-Term Up-Side Copper Trades: Streible

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Feb. 19 (Bloomberg) -- Bloomberg's Olivia Sterns and Phillip Streible of RJ O’Brien & Associates put futures in focus with a look at the copper market in "On The Markets" on Bloomberg Television's "In The Loop."

Blamed on the cold weather.

Is that the feeling on the floor this morning?

If you look at the market like copper, you have not seen any kind of impact whatsoever.

The market has been rising significantly in coming off of its lows.

What i'm looking at doing is establishing long-term positions to the upside in the copper market.

Some of the fundamentals currently, the london metals exchange.

Stock isles have been down 75% since last march.

You also have a ban on exports from indonesia.

It is creating a lot of tightness in the global copper stockpiles.

China, although they have been doing some tightening and they had mixed activity, they have been building stock piles quite aggressively and i think they are concerned about the shrinking supply that is out there.

So i think copper prices with the rising volume, the upward trend, i think the upward target right around 350, 370 and the key level of support around 318 and any violation below the low you reassess.

Housing starts have not had any impact on the rising prices.

Let's circle back to china because china has been reducing their forecast for factory expansion.

Yes, you say they are building stockpiles but what other key indicators are you looking at that make you bullish on china for copper?

It is really interesting when you look at china because they do this push and pull.

They increase their loan activity but their banks also decrease the amount that is available.

So it is kind of mixing all over the place.

I think with any kind of economy you start to see a turnaround start to take effect.

I think the china story is maybe farther down the road.

3-6 months out things start to turn around, and i think that is what pushes the momentum higher.

Were you surprised that all these last two weak nonfarm payrolls have not dented copper prices more?

I was really surprised, not only on koppel but metals like gold and silver.

Typically you start to see some kind of decrease in the prices when eusebius significant missi es, but we start to see a rally continued.

I think the fed's impact on continuing tapering -- we have to leave it right there.

This text has been automatically generated. It may not be 100% accurate.


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