Panic trades coming up: major oil, copper, gold, stock corrections

Away from any technical or even fundamental cues, rather it's when greed eventually implodes.

This is when the market gets really interesting.

Refer:

• JP Morgan Chase (rumored) holding over 90% copper via the London metal exchange

• Hecto US/UK oil trader buying up huge Brent Crude related contracts, thus driving up the Brent Crude oil price, as discussed in China's support of 'junk' EU bonds will create a further bond bubble as market become even more oversupplied. China/West will get higher oil price (on speculative oil pricing)

From the Telegraph 19/01/2011

"Hetco, which is part-owned by US oil and gas group Hess Corp, was said to have taken control of eight North Sea Forties oil shipments and two Brent cargoes – and it is believed to be in the market for more. The move would give Hetco more influence over the price of oil for immediate delivery. The cargoes are for February delivery.

The reports suggested that Hetco's purchases were the basis of a trading play and the trading house now has 30pc of the Forties oil being loaded next month and 25pc of Brent cargoes. Brent crude's premium over West Texas Intermediate oil has been increasing to abnormal levels since August last year, as US inventories of both oil and gas remain at high levels.

The news propelled Brent crude futures to $98.60 in intra-day trading on Wednesday, but this was still below the 27-month high of $99.20 seen last week. Many analysts expect the oil price to move above $100 a barrel this year.

However, there was also speculation that Hetco had been trying to sell some of its supply of Forties crude, but had failed to find a buyer for a third day in a row.

Brent crude for March delivery closed at $98.08 yesterday, a gain of 28 cents"

• The SPDR Gold Trust (ETF's) as discussed in Market correction imminent, Gold/Copper correlation and corrections due.

Good to watch a panic sell off on the ETF gold market, yearly chart:




If we do see 'fat finger' sells or even rogue trades going haywire, it would be on an inflation panic. With food/energy prices about to spike, a follow on 'sell panic may' occur. As the realization of damaging inflation is to company profits and operational costs, stock indexes may get caught up in any major sell off.