AS GOES COPPER, SO GO EQUITIES?: This wonderful chart, by our friend Adam Hamilton of www.zealllc.com, tells a terrific story of correlation… perhaps not cause, but certainly of correlation. Since March of ’09, when the bull market in equities began, copper and equities have travelled the same path. They are on that same path still! – From the Legendary Trader Dennis Gartman. For subscription information for the 5 page plus Daily Gartman Letter L.C. contact – Tel: 757 238 9346 Fax: 757 238 9546 or E-mail: email@example.com or HERE to subscribe at his website
Copper: SPX Usurps Stockpiles
From boring industrial metal to commodities superstar, copper’s wild bull market has been full of excitement. Its huge 475% run from its 2003 low to 2008 high made investors fortunes. Its subsequent panic-driven 69% plunge was catastrophic. And then copper’s resilient 183% post-panic recovery to its recent April high has been breathtaking.
Futures traders, hedge-fund managers, and stock investors have endured extreme highs and lows across this bull. And quite often they’re left scratching their heads wondering what’s going to happen next. But as any seasoned copper trader well knows, this base metal’s only certainty is acute volatility. When it comes to analysis, forecasting, or your best educated guess as to copper’s future direction, be prepared to circumstantially adapt.
From a strategic perspective, copper’s secular bull is driven by foundational economic fundamentals that will keep it alive for many more years to come. But things get a little trickier when we look at copper’s tactical price movements. Naturally technical, sentimental, and shorter-term fundamental indicators serve as logical price drivers. But as we’ve seen one should not rely on any single indicator.
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