Alert: copper exhausting its downside?
Let’s tighten our stop-loss on BOM …
Copper has cratered over the last few weeks. The reaction has very much been due to the global economic environment rather than any significant developments in the copper market. Our position in BOM has performed well for the very same reason. But technically copper could be finding some near-term support which would be supportive of zinc and aluminum prices as well.
So let’s tighten up our stop-loss on BOM (PowerShares DB Base Metals Double Short ETN) to just below near-term support (very tight). This will allow us to secure most of the gains (roughly 14%) on this position should it be stopped out. This also allows us to capture additional gains if today’s price action finds no follow-through and the rally in BOM resumes despite technical support for copper prices.
BOM (Last price: $13.16)
CANCEL and REPLACE your order to SELL ALL your shares of PowerShares DB Double Short Base Metals ETN, symbol BOM, at $11.40, STOP. New Price: $12.80, STOP; this order is good till cancelled.