MoneyWorksforMe (89.41)

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Flash Crash in Copper? Stop-loss domino effect? Grasping at straws here...

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January 19, 2011 – Comments (4) | RELATED TICKERS: VV , T , F

I was very surprised to see the heavily used industrial metal down over 30% according to kitco charts this morning....I haven't been able to find any news for the huge correction...The only possible reason I have been able to come up with so far myself is that perhaps copper reached a technical resistance level and with many traders setting stop losses it resulted in a huge domino effect of selling...

Admittedly, I expect copper prices to be volatile, but this is a huge move, even by historical measures...

If anyone has additional information regarding this, would you please fill me in?

Thanks in advance.

4 Comments – Post Your Own

#1) On January 19, 2011 at 9:37 AM, 100ozRound (99.76) wrote:

Probably a feed problem at kitco.

Finviz doesn't report it:

http://finviz.com/futures_charts.ashx?t=HG

It's actually up according to finviz

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#2) On January 19, 2011 at 9:48 AM, MoneyWorksforMe (89.41) wrote:

100ozRound ,

Right. I figured a glitch was likely a cause as well...but became more skeptical when it was left "incorrect" for so long...

I mean for those working at kitco, the chart and "significant loss" jump right out at you...

Thank you for providing that chart...I'm now confident this can be ascribed to an error involving the data...

If I see something like this occur again at kitco, I'll be sure to go elsewhere for metal price information...

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#3) On January 19, 2011 at 10:16 AM, 100ozRound (99.76) wrote:

I like Kitco's new KGX where you can see how much the price has increased/decreased based on the value of the dollar separate from buying/selling.

I think finviz gives a better overall visual representation of what's going on in the futures markets.

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#4) On January 19, 2011 at 10:35 AM, EPS100Momentum (71.54) wrote:

cu is down $1/shr from high at $45.27 now at $44.24

Temp. down move off the skewed housing starts data due to massive winter storms in midwest and Northeast as well as Southeast and flooding on the west coast.

It will show up in March as Stronger than expected demand.

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