Because it is used as a component for everything from autos to appliances to electronics to industrial / utility infrastructure, demand and price levels for commodity copper are alleged to be a bull$#it - proof indicator of 'real' global economic activity. Here's what 'Doctor Copper' ( so called because it's economic prediction accuracy rivals those with doctorates in economics ) is now telling us ...
from 'Put Your Seat Belts On' ...
(snip)If we take a look at the copper ETF, "JJC", we are provided with further justification. Copper is often referred to as "Dr.Copper" due to its industrial application and is known to be a leading indicator for equity markets. Copper has significantly underperformed equity markets and is likely leading the next move down. A look at the weekly chart which points to a rather dismal outlook. There is a major head and shoulder patterns developing.
Last summer turn into a bloodbath with nothing but red candlesticks taking stocks and commodities sharply lower. If you haven't already, it's time to lock in some profits. Short, intermediate, and long term cycles are pointing down, and the increasingly bearish technical developments cannot be ignored. We'll be looking at entering multiple shorts potentially in the very near future once/if setups present themselves. Buckle up and stay tune for more...(snip)




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