The BEST ECONOMISTS out there is DR. COPPER…market slang for the base metal, Copper, is reputed to possess a Ph.D. in economics due to its means to anticipate turning points in the world-wide market. Due to copper’s wide-spread apps. in most sectors from the economic system – from households and factories, to electronics and electric transmission – desire for copper can often be seen like a top reliable indicator of financial health in the world economy. This demand is mirrored in the current market price of copper. Usually, when the price of copper is rising, investors will use that as an indicator of better economic times ahead. On the flip side, when copper spot and futures prices are declining, there is a correlation of poorer economic times ahead. Investors would adjust there holdings accordingly. Traders are cautioned that the physical price of copper is fallible, and should not be relied on as the only indicator of economic prosperity or well being. As an example, a short term scarcity of copper might might see a short term rise in prices even as the global economic system is slowing down; conversely, a copper glut might cause decreased rates despite sturdy financial growth.
Looking at the chart above and looking at all of the charts in my previous posts http://www.swingtradingforecast.com/head-and-shoulders-pattern-for-the-global-dow-index/… you’ll notice there are some similarities. The only charts that don’t really look like Copper, Canada’s TSX or the Global Dow Index are the charts from countries who’s currencies who’s currencies are manipulated, all of them. Canada’s currencies a manipulated just like the rest of them but Canada’s bread and butter is resource based. The Global Dow Index has a similar head and shoulders pattern, why, I don’t know…I can’t explain that…but it pays to pay attention to that detail.
The market is definitely mixed…some of the investors out there I respect say stock prices are going up, some say their going down. The best Economists and investors out there I don’t respect say the same…it can surely mix you up. One thing is for sure… don’t let the mumbo jumbo side track you, invest your money the way the charts tell you. For me I’am waiting…and waiting…and waiting.
I’am seeing a head and shoulders pattern play out, so that’s the way I’am investing. If the pattern hold true, then the market should go down as I explained in many of my previous post’s, however, there are times when the patterns don’t do what there supposed to and the market goes the other way. So if the pattern in the chart doesn’t hold true to it’s character…I will buy, buy, buy…as Cramer would say. I haven’t written much about copper but I do watch it on a regular bases, only because Dr. Copper is one of the best economists in the world.
I’am looking for an up move in the markets till the election. the next pivot point is slated, November 9th