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Copper Going To $1

Back in February widely followed strategist David Threlkeld told the desk copper was going to $1. At the time we thought he was being a tad dramatic. But now….we’re not so sure.

Although it closed higher on the day copper is currently trading near 8 month lows.

In the near term copper – which is widely seen as an economic barometer -- has traded off on fears Europe’s woes will drag down the global recovery.

But that’s not the worst of it.

David Threlkeld says China has been gobbling up copper, ravenously. As a result world wide production has been increased – but, Threlkeld says, the China buying is somewhat artificial.

”Last year copper consumption was 5 million tons; Chinese copper production was 4 million tons and their imports were 3 million tons. If you look at the deficit there are two millions tons left over,” Threlkeld tells the desk.

In other words, China is stockpiling copper -- storing it away in warehouses -- but not using it.

Threlkeld fully expects that at some point in the future China will release the surplus into the market.

If that happens and Europe remains weak copper prices could fall off the side of a cliff.


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Trader disclosure: On June 8, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (IPSU), (BX), (PFE), (FTO), (RSX), (TER), (AXP), (BMO), (BBY), (DIS), (XCO), (SWN), (AAPL), (IPI), (SU), (V), (TEVA), (FXB), (GLD); Adami owns (AGU), (MSFT), (C), (GS), (INTC), (NUE), (BTU); Finerman’s firm owns (AAPL); Finerman owns (BP) calls; Finerman Owns (RIG) calls; Finerman’s firm owns (RIG) calls; Finerman owns (MCD); Finerman owns (JPM) calls; Finerman owns (BAC) calls; Finerman’s firm owns (JPM); Finerman’s firm owns (BAC); Finerman’s firm owns (C); Finerman owns (HPQ); Finerman’s firm owns (HPQ); Finerman owns (GLW); Scaramucci owns (AAPL), (MCD), (JPM), (BAC), (C), (WFC), (GOOG); Kelly owns (GS) puts; Kelly owns (SPY) puts: Jon Najarian owns and has sold calls against (MCD); Jon Najarian owns and has sold calls against (JPM); Jon Najarian owns and has sold calls against (BAC); Jon Najarian owns and has sold calls against (C); Jon Najarian owns and has sold calls against (WFC); Jon Najarian owns and has sold calls against (USB); Jon Najarian owns and has sold calls against (AAPL)l Jon Najarian owns and has sold calls against (GS)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of virtus investment partners, ltd.
Virtus investment partners owns more than 1% of (AMKR)
Virtus investment partners owns more than 1% of (IGE)
Virtus investment partners owns more than 1% of (DBV)
Virtus investment partners owns more than 1% of (XLB)
Virtus investment partners owns more than 1% of (XLV)
Virtus investment partners owns more than 1% of (XLP)
Virtus investment partners owns more than 1% of (XLY)
Virtus investment partners owns more than 1% of (XLI)
Virtus investment partners owns more than 1% of (XLU)
Virtus investment partners owns more than 1% of (DRYS)

For Anthony Scaramucci:
Skybridge Capital owns (AAPL)
Skybridge Capital owns (MCD)
Skybridge Capital owns (JPM)
Skybridge Capital owns (BAC)
Skybridge Capital owns (C)
Skybridge Capital owns (WFC)
Skybridge Capital owns (GOOG)

Brian Kelly
Kanundrum Capital is short(AMZN)
Kanundrum Capital is short(RCL)
Kanundrum Capital is short(XLY)
Kanundrum Capital is short(AFL)
Kanundrum Capital is short(CME)
Kanundrum Capital is short(EWI)
Kanundrum Capital is short(EWO)
Kanundrum Capital is short(GS)
Kanundrum Capital is short(HIG)
Kanundrum Capital is short(XLF)
Kanundrum Capital is short(FCX)
Kanundrum Capital is short(XLB)
Kanundrum Capital is short the Euro
Kanundrum Capital is short the Pound
Kanundrum Capital is short the Swiss Franc
Kanundrum Capital owns (GLD)
Kanundrum Capital owns (GDX)
Kanundrum Capital owns (GDXJ)
Kanundrum Capital owns (AUY)
Kanundrum Capital owns (GFI)
Kanundrum Capital owns (TLT)
Kanundrum Capital owns U.S. dollars

For Chris Caso
Susquehanna makes a market in (BRCM)
Susquehanna makes a market in (INTC)
Susquehanna makes a market in (MCHP)
Susquehanna makes a market in (NVDA)
Susquehanna Financial and/or its affiliates beneficially own 1% or more of (MCHP)

Matt Simmons
***No Disclosures***

David Threlkeld
***No Disclosures***

Colin Gillis
***No Disclosures***

Scott Nations
***No Disclosures***


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