Copper hits ’round number’ support at $3/lb. [w/ edit, ref. incorrect title]

[Edit] You write millions of words over a couple decades and you’re going to screw up once in a while. Copper did not hit 3, it hit 3.30. I noted that support incorrectly on the chart.

Copper price hammers at support

Well, here it is. The target noted in this post last week, 3 bucks/lb. and the 2018 high, is in.

Now what? Well, the indicators say we’re rolling over to the bust side of the inflation-fueled boom/bust cycle (a holdout indicator is the still flattening 10-2yr yield curve). It looks like the machines started buying copper as soon as it pierced 3. Logical. But not the end of the bear, most likely. Commodities, and especially industrial metals, have sent out the memo on the bust that is in process. But be aware that there are rotations in play with respect to inflation/non-inflation trades, sector relationships to yields, etc.

As for copper, if after all the damage you remain a commodities bull, an industrial metals bull, inflation bull, or inflated economic cycle bull then you are very interested in copper here.

Me? I’m watching it along with everything else. I don’t want to haphazardly buy the bust I saw coming, but I also don’t want to be a robotic thinker. Especially with sector rotations in play. But as a future gold bug I want to see commodities down (they are) and staying down until well after gold sets up as the macro’s shining asset. Meanwhile, we’ve had a little bit of ‘Goldilocks’ relief in play, which benefits neither gold nor commodities. That is where my attention has been.

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