Someone's messin' with poor innocents who've bought into the rumor that there's a possibility of a "Platinum" ETF that, when and if issued, would surely drive the metal's price through the roof. From the action today, it looks like an old-fashioned "snipe hunt" to me where some are left holding the bag.
The chart of the active contract shows a net loss of $15 on the day with an intra-day high exceeding $50 above the previous day's close. Somebody got "gamed" at least today anyway!
As with platinum, copper markets have also seen similar rumors. But, given already tight supplies, a copper ETF seems unlikely. But don't sell Wall Street short period! It's not really a surprise to hear rumors like this about copper since it was rapidly approaching obvious support at $3.00.
Metals, particularly of the less liquid variety, can break your heart and wallet. As an aside, I remember being long silver back in 1985 [I think] at around $7.00. I was at one of those WS conferences and waltzed into a meeting with silver prices pushing $11.00 dreaming of the many ways I was going to spend the quickly acquired treasure. Smugly leaving the meeting a scant two hours later and bragging about my certain gains a colleague whispered that silver had plummeted to $8.00. Not wanting to throw up in a crowd, I rushed back to my room and hyperventilated there maintaining my dignity if nothing else. Such can be the grief and comeuppance only commodity trading can provide.
Speculation and greed isn't confined to commodity markets. There was much hoopla today over Google Inc.'s (NASDAQ:GOOG) ascent to $500 and Apple Computer Inc.'s (NASDAQ:AAPL) new highs. So "search" and "iPod's" are what the U.S. economy is all about. Who are we to argue?
We should inspect the usual suspects again to see if there's anything else to glean from today's action.
Elsewhere these are some random "fryguy" specials.
That about covers the world for today doesn't it?
Disclaimer: The ETF Digest maintains positions in: streetTRACKS Gold Trust ETF (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), Central Fund of Canada (NYSEMKT:CEF), First Trust DJ Internet Index ETF (NYSEARCA:FDN), Internet HOLDRS (NYSE:HHH), iShares Lehman 7-10 Yr Treasury Bond ETF (NYSEARCA:IEF), Materials Select Sector SPDR (NYSEARCA:XLB), S&P 500 Index (NYSEARCA:SPY), NASDAQ 100 Trust Shares ETF (QQQQ), PowerShares Zacks Small Cap (PZJ), PowerShares Zacks Micro Cap (NYSEARCA:PZI), PowerShares WilderHill Clean Energy ETF (NYSEARCA:PBW), iShares MSCI Brazil Index ETF (NYSEARCA:EWZ), iShares MSCI Mexico Index ETF (NYSEARCA:EWW), iShares MSCI Spain Index ETF (NYSEARCA:EWP), Templeton Russia & Eastern Europe Fund CEF (NYSE:TRF), India Fund Inc. (NYSE:IFN) and iShares FTSE/Xinhua China 25 Index (NYSEARCA:FXI).