Copper and the Dollar have a “decent (not perfect) non-correlation” relationship in the chart below. Copper is breaking above its 2008 highs (reflected in the chart below) Yesterday I shared that Tin is on a breakout move as well (see post here)
CLICK ON CHART TO ENLARGE
If Copper is taking the leadership role, the breakout in Copper is suggesting that the Dollar will break support at (3) in the above chart. Time will tell, yet if the Dollar does break line (2), commodities and stocks should really do well. This type of action should push the long stock and commodity positions that are being held right now.
If you are short stocks, be extra careful of those positions should the dollar break below line (2).
