Dow Jones-AIG Industrial Metals Index

Dow Jones-AIG Industrial Metals Index includes: Aluminum, Copper, Zinc and Nickel.

The Indexed topped at mid 2006 ( top labeled 1) and lost 60 points or about 23% by mid June a bottom (labeled 2) was made and the index climbed higher to recoup most of decline.

Currently the index is trading just below the 50 daily moving average (DMA), RSI trending down, PPO still positive but seems to be ready to turn back down. Short term support at 230 - where the green and pink lines cross each other. Failure to hold the 230 level will indicate that the correction is not over and lower low (lower then 2) will follow. A successful retest of the 230 level will indicate the correction is over and higher highs should be expected.

Does keeping the penny still make sense?

It's all about the price of Zinc and Copper

By J. Scott Orr

Newhouse News Service

WASHINGTON — They accumulate everywhere, multiplying faster than bunnies, it seems, in pockets, purses and dresser-top jars. And you can't buy much with them.

So why doesn't the United States get rid of the penny, especially now, when, for the first time, the copper-coated coins cost the government more than 1 cent each to make?

At least one bill has been introduced in Congress to retire the coin, but it never gained traction. And the bottom line may be that when it comes to the penny, Americans don't want change.

"Americans want to keep the penny, it's that simple," said Matthew Eggers, policy director of Americans for Common Cents, which is fighting to keep the coin in circulation.

The most recent survey — conducted last year by Coinstar, a Bellevue company that puts coin-counting machines in supermarkets and other locations — found 66 percent of Americans want to keep the penny. It also found 79 percent will stop to pick up a penny.

But the penny's detractors have been buoyed by new figures from the U.S. Mint that show the skyrocketing prices of the two metals used to make the penny — zinc and copper — have pushed the cost of making the coin across the 1-cent threshold for the first time, to 1.23 cents. The penny is 97.5 percent zinc and 2.5 percent copper, according to the mint... -source

GFMS Base Metal Index Waves Analysis

GFMS base metal index is based on the official London Metal Exchange - LME - cash settlement price for primary aluminium, copper, lead, nickel, tin and zinc. The index is an average of the six prices with equal weighting given to each of the six metals. The index is based on January 4th 2000 = 100.


Click on the chart below to enlarge