{"id":31041,"date":"2015-10-15T21:12:04","date_gmt":"2015-10-16T04:12:04","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=31041"},"modified":"2015-10-15T21:12:04","modified_gmt":"2015-10-16T04:12:04","slug":"glencores-correlation-with-market-sentiment-and-an-end-to-the-collapse-in-commodities","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/10\/15\/glencores-correlation-with-market-sentiment-and-an-end-to-the-collapse-in-commodities\/","title":{"rendered":"Glencore’s Correlation With Market Sentiment and An End to the Collapse In Commodities"},"content":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on October 14, 2015. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

{snip}<\/p>\n

This quote is the entirety of a terse and pointed press release that commodity giant Glencore (GLCNF) (GLNCY) delivered to calm market fears about the company’s business. This release came a day after the stock plunged 29% in the wake of analyst doubts about Glencore’s financial soundness. {snip}<\/p>\n

{snip}<\/p>\n

The press release worked as Glencore’s stock quickly recovered all its losses. {snip}<\/p>\n


\n
\"Glencore<\/a>
Glencore has recovered all of its 29% one-day loss and then some<\/figcaption><\/figure>
\nSource: Bloomberg.com<\/a><\/strong>
\n<\/center><\/p>\n

The news was big given Glencore’s size (now greatly diminished) and position in the commodity complex. Google trends indicates the relative magnitude of the surge of interest. The buzz on Glencore’s potential demise roared louder than the buzz surrounding its big splash onto the IPO market just as commodities were peaking in 2011<\/a>.<\/p>\n


\n
\"Glencore<\/a>
Glencore made big news but mainly outside of the U.S. where the company is listed and\/or heavily invested\/active.<\/figcaption><\/figure><\/p>\n

\"The<\/a>
The interest in Glencore was short and sharp. The chatter has already died back down to previous baseline levels.<\/figcaption><\/figure>
\nSource: Google Trends<\/a><\/strong>
\n<\/center><\/p>\n

The combination of sharp price action and market news is signature for a major market extreme that signals the end of a move. In this case, Glencore looks like it has made a major bottom. In a Bloomberg interview, Jim Chanos even implied that he is finally ready to cover his short in Glencore<\/a>.<\/p>\n


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