Funds are still keen, with the end of the month likely to bring even more money to commodities due to the good performance they've had during January. It's a self-fulfilling prophecy at the moment.

The main story is still fund money. Stocks are low.

An unprecedented amount of new fund money has been attracted to the LME by virtue of index buying (commodity indices) and structured products.

We may not be out of the woods yet and further liquidation and selling could be lurking. Tonight's weekly chart closes will be important in determining near-term price direction.

Correction? What correction? With the shorter-term players locking in profits and systematic CTA (Commodity Trade Adviser fund) selling met by trade and hedge fund buying, base metals have stabilized after a volatile 24 to 48 hours.

It is difficult to know what is happening -- it may be profit-taking, but it is certainly not a trend reversal.