Copper is a leading market tell atleast for me. I follow it as a guiding light to me to show me where the markets are headed. The reason being it’s one of the cheapest metals , available in plenty and used for various purposes. For markets to improve the demand for copper should increase and hence increase in price of copper. However, at this point of time, it seems copper is going nowhere but back in its trading range of 3.05-3.90.
How has copper guided me through these rough times?
As seen from the two charts that I have posted down here back in Oct 4, 2011 (marked as 1 on SPY and Copper futures chart) when $SPY was falling apart and people felt that the world is coming to an end with the break of ever so important 112 level, Copper hardly broke its low of Oct 3, 2011 which was a short term bullish sign that it ain’t over yet.
On Oct 27 (marked as 2 on SPY on Copper futures charts) when SPY was looking to breakout out the 127 level and almost everyone out there was going all bullish, copper was no where close to its resistance of 3.90. Hence, I had no conviction to be bullish.
I will be keeping a close eye on Copper 3.05 and 3.90 levels going forward .
dchsn6
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