Chinese Copper imports

Imports are coming down as credit is getting tightened

The message from these two charts is simple: Chinese copper imports are coming down as credit is getting tightened. As a result, Shangai inventories are being drawn-down. We would expect imports to bounce back in July-August when 1- copper prices will fall further and 2- inventories will be so low that China will be forced to import again.

Chinese Copper imports ( SHFCHAD Index GP):

They are coming down as China is tightening credit and trying to move prices down.

Shangai Copper inventories ( SHFCCOPD Index GP) are coming down as a result

CONCLUSION: as soon as the inventories will fall much below 100,000 T we may see the Chinese back importing massively which we see in July-August.

The only downside risk is further credit tightening which may limit Chinese imports.

Soros Dumped Most of Gold Stake

 Soros Dumped Most of Gold Stake: SEC Filing

CNBC.com Article:

Billionaire investor George Soros's hedge fund dumped most of its gold holdings during the first quarter, according to a securities filing on Monday.

Full Story:
http://www.cnbc.com/id/43052132

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Citigroup recommends reducing resources exposure in order to cut risk

Citigroup recommends reducing resources exposure in order to cut risk
MarketWatch
By Sarah Turner

SYDNEY (MarketWatch) -- Citigroup Australian equity strategists said Tuesday that they recommend investors reduce exposure to the resource sector in order to cut risk. They cut miners to a small overweight in their portfolio and moved to underweight in energy stocks. At the same time, they lifted their positioning in defensive sectors of the market, by raising healthcare firms to index level and upping weightings in banks and other industrials. 'While resources have underperformed by about 5% recently, this only reverses gains a month earlier, and the sector could fall further,' they said.
Citigroup recommends reducing resources exposure - MarketWatch

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