On Monday I shared that it looked like “Doc Copper wasn’t feeling very well!” (see post here). Below is an update on JJC and Basic materials ETF (IYM). Support is still in place, yet both look vulnerable to a sizeable decline should support give way!
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Game Plan….We own the inverse basic materials ETF (SMN) due to the weakness in Copper and IYM. Both of the ETF in the above chart are setting on very short-term support. Should support give way, the patterns suggest a sizeable decline should take place!
http://www.cnbc.com/id/41994534 This CNBC post calls out concern to copper as well, but you were ahead of the curve on this Chris!
Denis…Thanks. Some things smell of lower prices/deflation. If positioned to score on defense, the weakness in JJC/FCX/IYM is a positive.
three cheers for (smn)…was was getting my lunch eaten…
good calls on seeing jjc and fcx..
Bob…I shared a couple of weeks ago that some things smelled like “deflation!” what does deflation mean…nothing more than “falling prices!” The JJC/IYM/FCX price action is helping the SMN position.
Hey Chris,
Interesting chart on JJG. Looks identical to POT in the AG. sector. What is your thought when two separate commodities move in tandem ….. is this a dollar thing on all commodities.
And there goes copper!