Copper Market: what is it signalling today?

Copper Market

The Copper Market tends to bottom and top before the Stock market. Hence examining the copper market can provide valuable clues in terms of market direction. Suppose the copper market tops after experiencing a strong rally. In that case, it should serve as an early warning sign that the stock market is in store for a significant correction.

inflation adjusted annual copper price USD

fred

The price of copper on an inflation-adjusted basis was higher in the 1915-1916 timelines than it is today. So much for the Hyperinflation, garbage theory. Having said that, copper is a leading indicator, so it tends to bottom and top before the markets. Looking at the current action of copper, it appears that copper has enough mojo left for one more sprint. This sprint could take it to the 5.10 to 5.50 ranges, likely coinciding with a multi-month top.

Hence the argument that the markets are likely to experience a more substantial correction in 2022 continues to gain traction. The markets have not experienced a robust correction for a while. They could shed 18% on the low-end and 24 to 27 per cent on the high end. The odds are that the trend will remain intact, and this strong correction will lead to the birth of an even spunkier bull. Or it could simply reinvigorate the current bull. The bull born after the COVID crash is a hybrid bull, and it will put up a mighty fight before it surrenders.

Other Articles of Interest

Trending markets

Trending markets; Only The Trend is your friend

Trending markets currently favour value stocks and growth stocks that took a beating in 2021. Certain commodities like Palladium and ...
Read More
Stock market experts

Stock market experts know Nothing

Last week’s bullish readings dropped to 22, and this week’s readings stand at 26. Neutral readings continue to trend upwards, ...
Read More
stock market technical analysis

Stock market technical analysis

Stock market technical analysis on its own produces mediocre results. However, when combined with Mass psychology the results are outstanding ...
Read More
market tops

Market tops occur when the masses are in a euphoric state

Even though things are viewed as bad now, these times will be viewed as the good old days in the ...
Read More
lot size

Tactical Investor Lot Size

This was initially posted in the Market Update forum. The current version is being modified to reflect a potential change ...
Read More
Panic Buying

Panic Buying Equates to Fools Paradise

Panic buying can be contrasted with panic selling, in which people sell good in large volumes, driving its price down, ...
Read More
panic selling

Panic Selling: Buy The Fear & Sell The Joy

Many subscribers (mistakenly) assumed that we were stating that the markets were ready to Drop. And they started to close ...
Read More
Velocity of Money

Velocity of Money: What is it?

Investopedia defines the velocity of money in the following manner: Economies that exhibit a higher velocity of money relative to ...
Read More
Copper Market

Copper Market: what is it signalling today?

The Copper Market tends to bottom and top before the Stock market. Hence examining the copper market can provide valuable ...
Read More
Define Market Sentiment

Define Market Sentiment and is it useful

Let’s define sentiment: an attitude, thought, or judgment prompted by feeling. This is the general definition of sentiment. So, let’s ...
Read More
what is hyperinflation

Hyperinflation

The penguins masquerading as experts on Hyperinflation are full of it, for they fail to understand a specific factor, “velocity ...
Read More
Better Investor

How to become a better investor ?

The next type of attack via the stock market will be to consistently trigger a stampede. At some point in ...
Read More
Inflation and deflation

Inflation and deflation: Which one rules the Roost?

“The four most dangerous words in investing: ‘this time it’s different.’” — Sir John Templeton Over the short timeline, inflation ...
Read More
gold and inflation

Gold and inflation: Gold is not the best hedge against inflation

Proof that being a gold bug pays poorly. The argument that Gold is an excellent hedge against inflation is faulty ...
Read More
Stock Market Trends

Stock Market Trends

We labelled this the market of disorder last year for a specific reason. We could use labels such as chaos ...
Read More
US bond Market & The Dollar

US bond Market & The Dollar

The reflation argument is totally rubbish. What you have is a readjustment situation in play. Trillions of dollars have been ...
Read More
Current stock market trends

Current stock market trends

We have said this 100’s of times in the past and will probably have to state it 100’s of times ...
Read More
QE - Quantitative Easing

Forever QE on steroids

As more and more jobs are shed, the printing press will move into extreme hyperdrive under the guise of trying ...
Read More
inflation 2021

Inflation 2021 Is a Non Event

Inflation 2021: Is It Something To Worry About Let’s start off with some headlines that have been posted over the ...
Read More
Herd behavior

Herd behavior The Mass Mindset Is Destined For Failure

Herd behavior and COVID Stock Market Crash Bullish sentiment is still trading above its historical average though it has yet ...
Read More
Stock market monthly trends

Stock Market Monthly Trends Indicate that the Dow is heading Higher

Stock Market Monthly Trends: Next Dow Target? The GP (Gnosis Panoptes) Index keeps experiencing mini surges. It has undergone three ...
Read More