Aibek Burabayev, Author at INO.com Trader's Blog

Copper Update: Metal Signals Short Term Bottom For Oil

Posted on December 24, 2015December 23, 2015 by Aibek Burabayev

In my previous update, I recommended covering your short positions in Copper to save a decent profit from the sudden reversal. The next day the price dipped further down to a round figure favoring buyback. Then until today, we saw volatile sideways trading inside of the 2.025/2.125 range. Currently, the metal has traded on the upper side of it. In the meantime crude oil has plummeted to an 11-year low and the two assets have diverged sharply since.

Chart 1: Copper-Crude Oil Comparative chart: The Chain Has Been Broken

Copper-Crude Oil Comparative chart
Chart courtesy of tradingview.com

The days following my last Copper/Oil post, Crude oil moved $2 higher as expected, but it couldn't close above the $44 mark and the oversupplied market brought the price down sharply. Despite that, Copper stood still charting a sideways pattern and expanding the triangle. Supply cut fears amid a weakening US dollar have spurred demand for the metal. Continue reading "Copper Update: Metal Signals Short Term Bottom For Oil" →

"Winter Is Coming"… Hungry For Gold

Posted on December 22, 2015December 21, 2015 by Aibek Burabayev

Behind The Wall

I dedicated my last post to China which is diversifying foreign reserves with large Gold purchases. This time, I want to share my thoughts about a reviving empire and the northern neighbor of China.

The Eurasian Economic Union (EEU) is the largest union on Earth by territory. It is so vast that on one side of it people try to survive in Arctic frost and on the opposite side one can enjoy a mild winter full of sunny days skiing in the high Kyrgyz mountains. The union ranks fifth by GDP (PPP) and seventh by population and it’s only the beginning. The member states are (in alphabetical order): Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Continue reading ""Winter Is Coming"… Hungry For Gold" →

"Enter The Dragon" Starring … Gold

Posted on December 15, 2015December 14, 2015 by Aibek Burabayev

Recognition

Last Monday, the International Monetary Fund (IMF) endorsed the inclusion of the yuan in the fund's Special Drawing Rights (SDR) basket effective on Oct. 1, 2016. The Chinese currency has now joined the elite global currency club and will be the fifth member alongside the US dollar, the euro, the sterling and the Japanese yen.

Beijing has long hoped that the renminbi (another name for Chinese currency) would enter the privileged short list of world currencies, and it finally succeeded last week. But, first and foremost they are celebrating a political victory.

Some experts doubted that the yuan could be judged as "freely usable," which is the main criteria for inclusion to the SDR, but the reality proves that the stronger one is right despite such obvious contradictions as tight currency control and shares sale ban. Continue reading ""Enter The Dragon" Starring … Gold" →

A Falling Knife Powered By "Clean" Diesel

Posted on December 3, 2015December 3, 2015 by Aibek Burabayev

Back in July, Platinum closed just below the important round number level of $1000 I outlined in my post titled "Platinum Could Hit The Floor". In that post, I clearly pointed out that the metal is in big trouble. And that was almost two months ahead of the Volkswagen scandal that dropped the bomb on the future of the diesel car industry and its subordinate autocatalyst sphere with its large demand for Platinum.

It's ironic that a two-lettered emission gas (NO, nitrogen oxide) knocked out a two-lettered company (VW, Volkswagen), that can be written in the following equation: VW+NO=K.O. Continue reading "A Falling Knife Powered By "Clean" Diesel" →

Copper Update: "Black Gold" Is Too Wild

Posted on November 22, 2015 by Aibek Burabayev

Last time I shared with you a clear signal from Crude oil to short Copper for a good dip down. Oil has dropped as foreseen from the $47.7 level. That's down a good $8 (17%) and it dragged Copper down along the way. This confirms Copper's tight relationship with Crude oil. Copper plummeted for a nice gain from a short position which has reached .35 (15% smaller than from Oil short) on Friday's low ($2.03). My original targets haven’t been met in both instruments ($ 37.7 Oil and $1.9 Copper), and that is why I would like to discuss my concerns with you.

Again we will start with the leading instrument in my regular cross-instrument analysis. Continue reading "Copper Update: "Black Gold" Is Too Wild" →

Author: Aibek Burabayev