Here's the weekly inventory levels for Cu and Zn. The copper looks pretty scary to me and I'm reducing my copper mining stock exposure. I can recall seeing a turn-around in inventories over the last year three times:
- Zinc - about a year ago.
- Nickel - late last spring.
- Zinc - last August.
All three times the metal prices followed suit and dropped pulling the mining stocks violently down with them. Despite all the bullish talk (or even because there is all this bullish talk along with bearish inventory movement), I'm reducing my copper exposure. At this point, I'm staying with, but not increasing my zinc exposure.