Doctor Copper Follows His Industrial Pals

People look at the Doc, with his Ph.d. in Economics as a key cyclical indicator. The Wall Street Journal gave investors handy reasons why Copper was under performing broader commodities…

Why Copper is Missing Out on the Commodities Rally

Silly MSM, what of the red metal’s silver and grey bros, the broader Industrial Metals (IM)? They were subject to the same reasoning that the WSJ fed to its herds and the GYX index was fine.

We’ve been noting two things every week in NFTRH

  1. Copper’s daily chart weakness and…
  2. Copper’s weekly uptrend within a channel.

We’ve also been noting the relatively bullish Industrial Metals complex as a whole. So now the media can bull horn Doctor Copper… woo hoo! Happy days are here again, but really they never left. The IMs nominally and in relation to counter cyclical gold have been just fine.

copper

GYX has been in its daily uptrend the whole while. Note the difference in the (blue) 50 day moving averages. Copper was in a short-term downtrend by the SMA 50 but a long-term uptrend by the SMA 200, which is pointing firmly north. GYX has both MAs pointing upward.

gyx

Anyway, we’ve been using the Copper panel in the weekly multi-commodity chart below to keep an ‘intact’ view of Doctor Copper and today I see tweets and articles reacting to it. One respected outfit tweets “Now this is how you break a downtrend”. Okay, but it was in a consolidation, not really a downtrend. Besides that, the broader IMs were firmly up trending. Was Copper going to buck that forever?

I am not saying I expected the pop here and now, but if the uptrend never ended why should it be a surprise when Copper goes up, other than the media maybe harvesting a few eyeballs about the big implications of this breakout? It’ll be funny if they actually do.

crb

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