When the financial press starts discussing Copper we should all perk up. However, it is after a 24% rise. So what should we do now?
Well the chart below suggests sell it if you own it. Trying to capture 25% every month is hard to do. We are up against the 5-year channel. How you choose to trade it is obviously important, but I would suggest this is too late to enter.
$COPPER is considered an important element in the global infrastructure trade. So I keep my eye on the Asian markets to understand where demand is coming from. The nice news is the Shanghai market ($SSEC) hit 2016 highs yesterday.
The news I can't piece together for a big bull market is why the Hang Seng ($HSI, down 1.35% overnight closing at 22531 at the blue line) and the Bombay Indexes ($BSE) are dropping. That is a 3-month low for $HSI.
Here is India or the Bombay Stock Exchange ($BSE). The Bombay closed at 26818 or down 2.54% at the blue line from this chart. That is a 4-month low.
Latin America (ILF) was down hard this week as well.
On the Commodities Countdown Webinar 2016-11-11, I covered off why this is a particularly precarious place in global markets.
Commodities Countdown LIVE! with Greg Schnell - 2016-11-10 17:00 from StockCharts.com on Vimeo.
The Toronto Stock Exchange ($TSX) made a new column of O's on the PnF chart this morning. A break through 14450 would put the Canadian index on a sell signal.
The Commodities Countdown webinar is focused on Commodities for Commodity investors. I think the $USD is a massive headwind for Commodity investors and the webinar goes to great lengths explaining what might be happening in the big picture. Commodities Countdown 2016-11-10.
The webinar talks about gold, silver, oil, and Natural Gas so I would encourage you to take an hour to review the global markets from my commodity centric lens to get another perspective. I don't mind if you don't agree, but it is important to be aware of other perspectives.
The $USD is now unchanged on the year (red line) which is a huge headwind for Commodities.
Enjoy the weekend.
Good trading,
Greg Schnell, CMT, MFTA.
