Daily Report 270916

Yesterday PP futures continued fluctuation; opened at 7100 and closed at 7066, and trading volume decreased 62094 lots to 199000 lots. Holding volume decreased 1990 lots to 677000 lots. Intraday main quoted prices for wires of north China, east China and south China markets are RMB 7850/ton, RMB 7800-7900/ton and RMB 7850-7900/ton, respectively. As for operation, current moving average system is short; MACD exposure downward extended as weak pattern, and recommend price fluctuation and downward trend.
Monday copper market adjusted at rally high position. Price reached near 5 days average, then recover partial loss. LME inventory yesterday increased 7250 tons to 364000 tons. LME physical discount narrowed $0.25 to discount $21.75. At this point, LME stock again increased for two consecutive days of rapid growth, from the LME inventory growth sources, the main increase is the LME Asian warehouse, on Friday and yesterday, respectively, have an increase of 10300 tons and 7300 tons. At present, up to 36.4 million tons of LME inventories not only much higher than the average during the year, and significantly higher than the same period last year, LME stocks constitute a potential negative effect on high copper prices. From a technical point of view, copper prices rebounded in the recent highs have been adjusted, and we are waiting for copper to give signs of rebound end.
Stock Index
News: Firstly: National Finance and Development Laboratory: listed companies reported earnings improvement is disturbing, non-financial A-share companies nearly 50% of the core net profit growth comes from real estate. Secondly: till recently, 1114 companies of Shenzhen and Shanghai stock markets have disclose third quarter earnings preannouncement, overall operation situations of listed companies in the third quarter are optimistic; nearly 60 percent are predicted optimistic. 3: Nanjing introduced the purchase limit policy: residents with two or more sets of new housing may not purchase new commodity housing.
                                                                                                  Dong LV (Investment Certificate NO. TZ008452)