The IMF's managing director, Dominique Strauss-Kahn says: "The European debt crisis has been contained and the International Monetary Fund still expects global growth of about 4.2 percent this year", adding “We do believe the recovery is strong,”
Which leaves me feeling a little puzzled about the price of copper.
Perhaps inventory levels are being drawn down so that all the economic growth can be achieved with a weak copper price? Except that in London inventory levels are still quite high.
Perhaps all those Chinese pig farmers are cashing in their alleged million tonnes of cathode, adding excess supply? Or perhaps some new source of copper is coming on stream and depressing the price?
Or perhaps the managing director of the IMF is wrong.
The copper chart is very simple. The price is falling and the 20daySMA has dived down through both the 150 and 200 lines. But it's not really over-sold on the RSI(14). The MACD is pointing south. No convincing support trendline can be drawn until the price retraces its recent decline. The price really does need to break that red resistance trendline and get back above 300 and stay there - otherwise it's fingers crossed for a bounce off something like 265 - I've drawn a support line there from October 2009.
If copper does get back above 300 - or if someone can prove the pig farmers are selling - then perhaps the growth story is right.
We ought to find out quite soon. Within a month I'd say.