Copper, aka "Dr. Copper" in economic circles due to the fact copper demand is seen as a barometer for the global economy, has found some support today off a key level on strong German data. But do not take your eye off the ball as today's "hold" is not a perch that looks terribly sturdy.
Nickel has been one of the bright spots in the metals space +4.5% YTD.
This morning, Copper bounced off the key 50mda level as data appears not as bad as the markets have indicated.
In Germany, the "IFO" survey which measures key business confidence posted a reading with levels of economic strength not seen since July 2011.
This data coupled with the "ZEW" survey of last week tells a different story. The world has not fallen off an industrial cliff despite China's weaker flash PMI last week.
While the jury is very much out on the sustainability of the global economy, my view is that economic readings globally do not justify the market rhetoric of the last couple days that have come with a turndown in global equity indices. Copper will continue to be a highly speculative playground for investors trying to make a directional call that I do not think can be made at this juncture.