The Way I See It (JJC, AA)

Commodities, in particular copper and aluminum have been ripping lately. I have two schools of thought on this and a way to play the more likely school of thought, at least in my opinion. From a trading perspective, this move up in the metals is very violent. You could short based on technical levels, but I am not a technician and as such don't have particular levels. However, from a macro economic standpoint i see 2 scenarios based on these moves in metals. 1. We are beginning to see hyper inflation which will cripple the world economy (less likely). 2. Economic growth is stronger than people thought, but not so strong to cause hyper inflation. Almost a goldilocks economy. (more likely) The way to play scenario 2 is going long shares or Alcoa AA or perhaps buying calls in the company. I like Aluminum Corp. of China ACH better than Alcoa because I believe it to be a better managed company and it is diversifying away from simply being an aluminum producer. I also continue to reiterate buying the copper ETF JJC. I also like the infrastructure sector as a result, but have no particular recommendation on them. Only time will tell which of the 2 scenarios plays out over time, but I am in the camp that things are better out there than people believe. Disclosure: no positions in any of the above mentioned companies, but am long CAT in the infrastructure sector.