Copper Thumbing Its Nose at Chinese and European Stimulus

Last week we noted that copper was at a critical level and further weakness could open the door to much lower prices in the months ahead. Well, that further weakness seems to be materializing today as copper drop is down almost $.05/lbs, or 1.6%. While the lows of the year ($2.92/lbs) have yet to be taken out, we presume that day is not far off given the bearish technical price pattern evident in copper. And this just days after China cut rates and the European Commission announced an infrastructure spending plan. If copper can't rally on simultaneous Chinese and European stimulus announcements, we are not sure what will make the metal with a PhD in economics get into gear.