Copper and Rails…Both sensitive economic industries. Are both looking up, showing signs of improvement? The chart below was posted on dshort earlier this morning, which happen to reflect upside breakouts from falling channels.
On 9/1, the chart below was posted here, which suggested that a low was in place for the 500 index, due to the pattern and long downside wicks.
Big-time falling resistance test is at hand this morning, in the 500 index. Will update that chart later today.
Due to this key resistance, protect the nice gains in Chile (ECH) and Homebuilders (XHB) with a tighter stop than normal. Place a 3% trailing stop right now.
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Markie,
Could be…strange world for sure.
In the past, Copper has been tied to growth or lack of.
Sorry – my point was that the rising price of Copper may be an indicator of financial distress rather than increasing use of the metal.
Re Copper – has there possibly been a rough correlation with the Gold price. I wonder if it is the poor mans gold in (say) China. Hint – to predict the price of copper – lag the gold chart by two months and you are very close. I think this stuff is being hoarded – and why not – in China local government officials are less likely to steal copper than gold, and the copper can be easily sold off in bite size chunks when you need the cash.