Jim and Trader Dan,
Dan’s comments:
"Interestingly enough, yesterday’s holiday-related release of the Commitment of Traders data showed the speculator category solidly on the NET LONG side of the greenback with the big funds having just this past week moved over to that side after being net shorts since May of this year ."
In other words, the bullish inflows by the specs are matched outflows by the commercial traders. A classic bearish setup is nearly complete. Then the hammer will drop soon!
CIGA Eric
Jim,
Here is one more example of China moving to secure a supply of iron ore and steel.
The Wuhan Iron and Steel Group, a Chinese steel maker, agreed to pay $400 million for a stake in Brazil’s MMX Mineracao e Metalicos to broaden its supply of iron ore. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil.
Best regards,
CIGA Christopher
Chinese Group Buys Stake in MMX Steel
December 1, 2009, 3:58 am
The Wuhan Iron and Steel Group, a Chinese steelmaker, agreed to pay $400 million for a stake in Brazil’s MMX Mineracao e Metalicos to broaden its supply of iron ore.
Wuhan Steel, based in Hubei province, will appoint two board members to MMX and become the second-biggest shareholder of the Brazilian company with a 21.52-percent stake, the Chinese company said. Wuhan Iron and EBX, MMX’s holding company, also signed an accord to build a steel plant in Brazil, a Wuhan Steel spokesman, Bai Fang, told Bloomberg News.
MMX, which is based in Rio de Janeiro, has a market value of 3.7 billion reais ($2.1 billion), according to Bloomberg data.
