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Just take a look:
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And Hi Grade copper is a bit the same:
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Although you will note that a wave five has been reached. But this may only be the firstwave five – and there may be a second wave five level still ahead. But the third I have some doubts about.
So it is not surprising that the Aussie is running hot:
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And as the talk of parity hits our news on the hour it is maybe time to start thinking contrarian and ask is it time to ‘short’. How often have we seen the rising euphoria followed by disappointment?
I am not saying these markets cannot keep tracking higher – and they probably will – but buyers are now buying high in the risk curve. And it is often these late rally buyers who are quick to sell out after the last hurrah leaving some smaller players left holding the baby.
Just beware. And I am not just talking here of the retail traders but also the man and woman in the street who are buying US dollars to stash away – as the rate is ‘just so good’. But there are many considerations when buying foreign currency.
But it won’t stop the punters.
Enjoy the ride
Tom Scollon
Chief Analyst |