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Traders' Notes Overnight Market Snapshot 22-Jul-2010 7:48 AM

Spot High Low Last Chg
n Copper's push out to new recent highs (see chart) is a great sign U.S. 10yr yield 2.91% 2.87% 2.91% +.020%
for the very few who aren't bearish these days, as the red metal Euro 1.2879 1.2739 1.2874 +.0122
has an uncanny ability to forecast the direction of global economic
$/Yen 86.98 86.35 86.81 -.12
activity. The rally in copper still hasn't stopped the bears from talking
$/Can 1.0503 1.0392 1.0399 -.0093
about a supposed unreported 1.5 million tonne hoard of "hidden" copper
Pound 1.5296 1.5152 1.5272 +.0097
stocks in China though. Given the persistent premium that copper
commands on the Shanghai Futures Exchange over the London Metals Spot Gold 1189.35 1181.55 1186.75 -5.05
Exchange, and the persistent decline in LME inventories, the bears Spot Silver 17.82 17.63 17.78 +.01
case is waning rapidly. Spot Platinum 1517.00 1508.00 1516.00 -5.00
Futures
n Our screens are showing lots of green this morning as global
Sept E-Mini S&P 1079.00 1061.25 1077.00 +13.00
markets rally in the wake of a surprisingly strong EU economic
Sept Nasdaq 1838.25 1813.50 1835.75 +20.00
report. For the month of May, the 16-country euro zone saw new
Sept T-Note 123.69 123 8/32 123 9/32 - 8/32
industrial orders surge 3.8% month-over-month and 22.7% yr-over-yr,
the fastest such pace in ten years. Sept Canada 96.18 95.14 96.09 +.88
Sept Euro 1.2878 1.2737 1.2873 +.0130
n China sent a very clear signal overnight that the value of the Sept Yen 115.88 115.02 115.20 +.16
yuan will be determined in relation to a basket of currencies, not Sept Aust$ 88.45 86.84 88.37 +1.23
the US dollar. The essay, which was published on the central bank's Aug Gold 1189.30 1180.70 1187.60 -4.20
website, is probably an attempt to lessen the excessive worldwide focus Sept Silver 1785.00 1763.50 1780.50 +.20
on the currency's value against the dollar.
Oct Platinum 1523.00 1508.50 1522.00 -7.80
Sept Copper 317.00 304.75 314.55 +5.20
n US rates will eventually rise, but not for a long time. In the wake of
Bernanke's semi-annual testimony yesterday, markets have pushed Aug Crude 0.00 0.00 77.44 +.90
out their expectations for a hike in short term rates until Aug Nat Gas 4.550 4.509 4.52 +.011
September 2011. Sept Cocoa 2957 2926 2942 +7
Oct Sugar 17.68 17.52 17.65 0.18
n Wow! We thought we were bullish on gold, but a GATA member Sept Coffee 160.25 157.60 159.70 +2.40
says the yellow metal is really worth....drumroll please, $52,381 per Copper 3m 6968.0 6755.0 6950.0 +95.0
ounce! The obscene figure was derived by relating the amount of funds Aluminum 3m 2039.0 1995.0 2035.0 +25.0
in circulation in the US ($13.8 trillion) and the US's hoard of gold of
Nickel 3m 19900 19380 19875 +350
261.5 million ounces. Keep in mind that back in 1971, President Nixon
Zinc 3m 1935.0 1880.0 1938.0 +28.0
"temporarily" removed the dollar's convertibility to gold. Since then, the
US dollar's purchasing power has shrunk an incredible 95%. Tin 3m 18470.0 18100.0 18440.0 +65.0
Lead 3m 1910.0 1840.0 1911.0 +46.0
Data to watch for (expectations in brackets): Nov Soybeans 986 1/2 973 986 1/4 +7 3/4
Sept Corn 383 3/4 376 382 3/4 +3
n CA Retail Sales, May (0.4%) 8:30am Sept Wheat 602 583 3/4 601 +12 3/4
n US Initial Jobless Claims, weekly (445k) 8:30am
n US Export Sales, weekly 8:30am Chart of the Day
D a ily S e p te m b e r C O M E X C o pp e r
n Fed Chairman Bernanke Speaks, 9:30am 09 /0 3/2 0 10 - 2 9 /0 7 /20 1 0 ( NY C)
Pr ic e
USc

n US Existing Home Sales, jun (-9.9%) 10:00am

Lb s

3 60

n
356

US Leading Indicators, Jun (-0.3%) 10:00am 352

n EIA Natural Gas Storage Change, weekly (51bcf) 10:30am 348

344

n Bank of Canada Monetary Policy Report 10:30am 340

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As many of you will notice, we have deleted the "In The Portfolio" section 328

324

from Traders' Notes. The previous 'guided account" program is now only 3 20

available through our friends at Blackheath Fund Management, run by Chris

316

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Foster. Over the past year, their assets under management have grown, so it 308

304

would be a disservice to investors in the Fund to continue publishing 300

positions, and/or stop levels. Both Jeff and Jonathan remain long-term 296

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investors in the Fund. For those of you that have been following the guided 288

program and haven't yet converted to the fund, or an individual managed 284

2 80

account, please speak to either Jeff or Jonathan to discuss your options. 276
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M a rch 201 0 A p ril 20 10 M a y 2010 Ju n e 2 010 Ju l y 2010

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