3 Metallic Amigos; Cu, Au & Ag

It’s just another copper, gold and silver post. Daily charts of three metals of differing character and utility. Here is what the live (at the time I took the snapshots) futures charts are saying. Click them for a clearer view.

Copper (cyclical, pro-global growth) has now decisively broken the support of the 200 day average (orange) and heads toward the 2018 lows. It’s as if it sees the same things that the CME Fed Funds Futures traders, the Fed itself and the 2yr Treasury yield see. And it ain’t inflation.

copper futures

Copper demands a look at the weekly view.

Men Who Stare at Charts may soon be reporting the news of a gross looking H&S top in process. It’s just a potential at this time. But if it is real it is a disturbing thing for the greater markets; at least the ones that do not favor Goldilocks and a strong dollar (like US services sectors for example).

copper futures

Gold (counter-cyclical) is still fooling around above the SMA 200 after its little head fake and whipsaw out of the wedge, above the neckline and above the SMA 50. Supports are 1260, 1240 and 1215. This is the one that will eventually gain the bid if the good doctor above craps it. One disturbing thing for gold is that some usual suspects are still wildly bullish on gold, drawing Cups, Handles, Bowls and other patterns to fit the view that the trade war is going to end civilization as we know it. In other words, not all gold bug generals have signaled retreat and usually that is needed before the next rally. So I don’t completely overkill the shtick, just imagine the Men Who Stare at Charts graphic here…

But anyway, the supports are shown and if gold should climb above 1300 again at any time it would probably be on its way.

gold futures

And then there is silver, the precious metal/commodity, counter-cyclical/cyclical cross dresser *, having more inflation sensitive characteristics than gold and more industrial (cyclical) uses as well.

Silver is trying to establish support at what was the second of two key areas (the first, around 14.80 now beginning a resistance zone up to 15 that includes the declining 50 and 200 day moving averages). The next stop if this fails is probably 14. But thus far silver hangs on. Silver often finishes its corrections with some kind of climax. When the precious metals do move however, I expect silver to eventually move best, assuming an outright deflationary collapse is not the macro play.

silver futures

* In the modern era of Generation Whateveritisnow I try to limit the use of the word “Tranny” as I often used to write, when referring to the Transports. I cringe just a little knowing that despite it being accepted market lingo from my formative years it could be offensive to a particular community of people. So I limit its use for that reason. So, should I cringe when writing “cross dresser” as well? Where are the lines? I don’t want to be a dick, yet I also don’t want to become a tepid, boring and politically correct writer. I think that “cross dresser” stays. It’s funny to me. But again, I am not of the era of Generation Whateveritisnow or even several generations before it.

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