Aluminum hikes up in the US as demand surges

After declining at the lowest point yesterday since the month of July in the year 2013, aluminum has again regained its posture by increasing its value to 0.3 percent. According to the reports which were published in the month of November, the annual consumption of the automobile industry has been noted as 17.2 million tonnes. The records from the month of October shows that the consumption of aluminum from the construction industry has increased by about 1.1 percent.

A Senior Fund Manager at the Astmax Asset Management Inc, located in Tokyo, Testu Emori, stated that the US based sale of aluminum based automobiles is  very much impressive in number. He also added that the consumption of aluminum in the construction industry is also  positive, and this could bring up tremendous effect on the market of the base metal.

In, London Metal Exchange, the aluminum stored in the warehouse awaiting for delivery has increased 0.3 percent, and has reached 1,983.85 dollars per tonne.

Crude Slides After Saudis Suggest Oil Stabilizes Around $60

Just when industry experts were eying zee stabilittee in oil prices in the last 12 hours, this happens...

*SAUDI ARABIA SAID TO SEE OIL AROUND $60/BARREL: WSJ

And crude oil prices begin to dip once again.

As The Wall Street Journal reports,

Oil may stabilize around $60/barrel, WSJ reports, citing unidentified people familiar.

Suggests Saudis won’t push for supply cuts in near-term, even if oil prices fall further

*  *  *

And the reaction...

Put/Call Ratio Surges To Highest Since May 2012

The various interpretations of put/call ratios are as diverse as the number of traders who view them. Typically they are used contrarian-wise, a high Put/Call ratio signals an over-cautious investor universe and thus is bullish (and vice versa) but in recent years that has been much less evident. Currently, the index-based put/call ratio is at 1.80 - the highest since May 2012, having been notably above 1 (i.e. more puts than calls) for most of the days since the Bullard lows.

Put/call ratio (rebased around 1 for clarity) is at its highest since May 2012...

Of course, there is one difference now... no QE (in the USA)

Chart: Bloomberg

The Longest Streak In Stock Market History... Is Over

For 29 days - off the Bullard lows - the S&P 500 closed above its 5-day moving average. As MKM's Jonathan Krinsky noted last week, this is the longest streak of sustained equity momentum higher in the history of US markets (surpassing the previous record 27 days from 1928). Today (well techncially Friday's early close) saw that streak come to an abrupt end...

The outcome post a reversal is mixed:

Nickel hopes to be stable soon

Since the year 2005, nickel has been destructed as well as declining from the heights, the sudden and intense decline in the value of the metal, has caused massive closure of  nickel mines, which in turn lead to large scale unemployment. The main reason behind the fall of nickel price was the decline in the demand for stainless steel, and also the growth in the demand for plain steel used in construction.

According to the IBIS World, the price of nickel had reached to the  highest points of  unknown heights after the financial crisis, and also shattered due to the lack of economical development all over the world, in the following years.

According to the forecasts there are chances that the future of nickel could be better, but best is not an option. In the month of May, this year, the value of nickel reached a two year high, but the condition of the metal has been worsening since then as it soon declined to 25 percent lower.

The reason for the hike in the price was the sudden ban of Indonesia, on the export of unprocessed nickel, which increased the price of the metal by 56 percent at that time.  But the gain was suddenly turned to decline, when other nickel producers filled the hole created by Indonesia, with the supply of nickel which was more than required.

China's Lead Conc. Imports Hold High in Oct. on Higher TCs, Improved Market Fundamentals

China imported 176,600 tonnes of lead concentrate in October, holding high at the second highest this year, albeit a 13.01% drop from September, China Customs data indicate.

Lead concentrate supply in China has been tight this year, turning lead smelters to overseas market. 

The National Bureau of Statistics reported a 9.27% decline in China’s lead concentrate output in October, which aggravated concentrate shortages. 

Demand for the raw material started rising in September as some smelters built stocks for winter production.

‘Dr Copper Theory’; right or wrong?

Before the  market closed down last week, the ratings showed that, metal has sledged down to a four and a half year lower sides, but at the beginning of this week, copper is giving a bit of hope in the market. But for now the value of copper as one of the important industrial metal, has plunged down by 9 percent, and this is where a situation comes that, the ‘Dr Copper Theory” becomes a warning, for some of the investors, regarding where the stock is going.

According to this honored theory present in the market, the metal; copper has an ability to sense the economic turning point on the globe, and hence could also measure the health of the stock market rally. This is because copper is a boundless metal, which is being used in homes, power industries, and many other forms of industries. So when the price of copper is falling down, then it means that the whole financial assets are being affected.

George Gero, based on RBC Capital Markets commented that, as the metal has limitless uses in the industry, it can be said to be an indicator of the economy. And therefore the decline in the value of copper, will in turn raises concerns regarding the whole financial sector.

Even when saying so, Chris Kimble based on Kimple Charting Solutions, stated that, the copper price has been slowing down for the last few years but the equities have been climbing up swiftly. Then, as usual the question arises, is the ‘Dr Copper theory’ effective?