Most inventories down again except nickel. Prices rebounding a little.
I think I will use this as a last opportunity to lighten up a little on the metals. The junior oils are continuing to do well. I expect the base metal stocks to be soft until mid to late June and then start the climb up again. The market will not ignore the earnings that are being posted and the market will build with the anticipation of those earnings reports coming out in July.
China's demand is here for the long term although their drawdown on LME inventories will fluctuate because of their use of their own strategic inventories. I get the feeling they like to stir things up so that the prices have a chance to pull back before they continue their buying.
One thing I am doing as a stragey is switching from stocks to warrants. The warrants have fallen faster than the stocks on a percentage basis. Conversely when the stocks go up, the warrants will rise faster. I am making this switch though for only about 25% of the amount of base metal stock I am holding. This strategy obviously can only be applied on stocks with long term warrants. It also assumes that the stock metal price will climb again. If they fall, I lose more value faster. But on a risk reward basis, I like it.
JFF7
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes
