Copper is Beginning a Major Short Squeeze

Copper is experiencing the beginning of a major short squeeze in the futures market. Back on August 6, 2019, Managed Money Positions were net short a record 74,597 copper futures contracts with a copper futures price of $2.537 per lb. SInce then, Managed Money Positions have experienced net covering of 61,283 copper futures contracts, reducing the net short position to only 13,314 copper futures contracts. This short covering has caused copper futures to explode higher by 10.45% to a price this morning of $2.802 per lb.

Copper could be ready to make a much larger move higher! Remember, on October 9th of last year, gold was trading for only $1,187.20 per oz with a record Managed Money Net Short Position of 103,009 contracts. Less than one year later on September 3, 2019, Managed Money Positions in the gold futures market reached a record high net long position of 290,709 contracts for a total bullish reversal of 393,718 contracts. During this eleven month time period, gold futures rallied by 30.53% to reach $1,549.6 per oz.