This page has been archived and commenting is disabled.
Dr. Copper's Deja Vu
In the last two days, Spot Copper prices have broken below a three-year up-trend line and as Stone McCarthy notes, continue to extend their worrisome divergence from stocks, "this has been one of the primary pieces of evidence [they've] been using to make [their] case that the U.S. equity market is in the final stages of an impulsive rally off of the November '12 lows." They go on to note that, "Due to the fact that copper so closely measures the "pulse" of global economic activity, the tendency for copper to lead equities at market tops and bottoms is something we've covered many times in our writings over the years. This time around, unprecedented efforts to stimulate the domestic economy have left many uninformed investors blind to the weakness that is being experienced in what is seen an important engine of global growth, emerging markets." Every market cycle is different, with leading divergences by copper prices lasting anywhere from a couple of months to several years. The last time the divergence between copper prices and the S&P 500 was as long lasting as the current cycle was prior to the S&P's 2007 price top....
Copper has broken a three-year uptrend line...
and the current divergence is the greatest since the top in 2007...
Charts: Bloomberg and Stone McCarthy
»
- 15985 reads
- Printer-friendly version
- Send to friend
- advertisements -
Not good for silver
Kaufen Den Verdammten Dip
Larry Motherfucking FINK is buying copper up the ying yang
Yes, yes - the other monetary metal is going to be killed by all this money printing.
up the ying yang?
Is he in Asia?
Or is it Kamper Van Beethoven?
.
You mean not good for silver mining?
Its not.Forget the mining byproduct issue.
Dr.Copper has a nurse called Silver.
Unpopular as I am when I point it out.Silver is the new copper, and people should
check out what happened to copper 1929-38.Gold IS the monetary metal.
Gold bought copper mines for my family back in the 30's.
Just saying.
Thanks for the info. Since the spot price ratio of gold to silver is around 55 to 1, how much worse (in terms of silver) can it get? I see folks on ZH saying it should get back to "normal" ranges of around 25:1.
It must not go above 60 from a technical perspective. Silver is much more sensitive to a weak dollar than gold, so a rebound in the EUR should be supportive for silver.
it has been years since silver had such a narrow bollinger band.
It will break out, the question is in which way?
COT data would suggest to the upside.
Economic fundamentals (industrial demand) suggest downside.
Gold couldn't drag silver above 29 so far. That's not very encouraging.
Paging K-Hen....
Drone copper's ass!
Drones need copper and silver for their manufacture, and a lot of droning is needed, so Drone Wars are copper bullish.
Or maybe those giant piles of copper they'd been hedging into over in china are getting bled off into production while purchasing slowed. I think this is the site where I read the Chinese were buying physical raw materials with their export deficit dollars and euros, rather than buying debtworld bonds.
+100.
I laughed so hard.
Drone ____'s ass. Is the new Nuke 'em!
Buy the dip
Ive taken a lot of hits from the cool aid drinkers here, and I know I'll get much more, but silver and gold are going down much more before they go boom! Gold will be under $1500 at some point mid to late year. Maybe sooner.
I know what you stooges are going to say, so just save it suckers!
I'll check back in by years end and we will see who is eating crow by then.
Chug chug.
How come a 500' spool of 12gauge THHN is still $62?
Insulation ain't cheap, bro.
Because spot price of anything is a hoax, contrived by a few large banks. That way, "inflation" stays low while printing trillions every year. In other words, you're being lied to and your conscience knows it, asking a very logical question: Why is the physical still high when paper price low?
You, like the rest of us, are a pawn in Bernocchio's plan to hide the real and true economic stats from the sheeple.
How long can it last is the question.
Also, perhaps they purchased large quantities of the raw mtl at higher prices and need to recoup the mtl cost. It may take time for finished goods price drop to be proportional with the raw mtl.
It's the only way to squeeze hams who seek to put up 80 meter dipoles. Because they build the radios themselves, can't squeeze them there.
Analog phone cable works well for that, but its a bitch to strip.
It is however up 1% today
The ZH effect, they call this in commodity trading circles.
you can build a holographic economic deathstar and you can even lead the muppets to it and make them drink
but you cant ever change the basic factors, the fundamentals assert themselves of sheer exigency
China
But, but, but ... isn't it different this time?
This market is like a Fucking Singulatiry. All the laws of Technical and Fundamental Analysis seem to breakdown at 9:30 AM EST....
http://wallstreetfool.com/2013/03/20/the-russians-are-coming-comrades-ti...
I'm telling you this whole Cyprus espisode reminds me of 2008 with Lehman. Greece was Bear Stearns and Cyprus is Lehman. Personal feeling and their disdain of Russia are going to make these guys let Cyprus go bankrupt and then watch the domino's fall. Just watch those fucking rumors that ramp the market...
Actually Cyprus is JT Marlin...
+1 for the blast from the past reference...anyone who came up there is no longer in the business. While it was not the original "boiler room", it was one of the worst. I came up at Pru Bache, with the original cold call cowboys who had moved there from....you guessed it! Lehman Brothers!
The market is driven by POMO's and Algos. Why should anything fundamental matter?
Winner winner chicken dinner!
Unless the Fed says something totally unexpected today, nothing will change.
POMO's and Algos will drive the DOW to 15,000 and beyond.
Volume-less rallies rule!
Larry Fink is not worried about this either.
I'm geting fucking sick of hearing about "Dr. Copper". I've been hearing about how Dr. Copper has been sending "worrying" signals, double tops, triple tops you fuckin' name it for a couple of years now.
Come on, CRASH already!
I get the sense that 300 million Chinese hold copper ingots .
FCX is at long term support. If $30 breaks look out below. They probably want to hold this level at all cost to confirm the massive economic recovery we are having. LMFAO.
It's a shame that attention was brought to this divergence as it must have somehow gone unnoticed by bernanke's market manipulation algos. For certain there is a programmer hard at work right now coding in a supply of money to the copper futures. BTFD.
Let's do a little thought experiment. Let's say you are a country with Trillions of foreign reserves. Let's say you are an export driven economy that uses a lot of copper in the production of goods for domestic and export sales.
Can you figure out a way to use your foreign reserves in the marketplace to extract value when purchasing copper?
Is hemp up or down?
There are more endocannabinoid receptors in the body than any other receptor type.
The endocannabinoid system is a major regulator in the body implicated in almost all diseases including cancer.
Medical Marijuana prohibition is a crime against humanity and a violation of the religious precept - heal the sick.
Just thumbs up because you put a smile on my face
nah, copper will stop fighting the fed as well, and inflation pushing it up quickly like it did in 2006. then maybe in a year or two after the inevitable collapse happens. or it is tomorrow?
It's not the destination, it's the journey!! LOL.
Maybe it was just the department of fatherland security deciding that 2 billion rounds of hollow points are enough for now.
Very tempting to start shorting the Dow but I got burned on BEARX and GRZZX in 2011.
This is exactly why JPMorgan is trying to launch the physical copper ETF: so copper (S&P via translation) will never go down again. Honestly, what retail consumer wants to buy a copper ETF? How do you market that? You don't, you just use it as an excuse to hoarde/squeeze phys copper and buoy global ecnomic sentiments for..eh...vur.
Just when I was getting ready to go to the old copper mine and dig up a few hundred tons the price drops. Oh well, its still in the ground and my grandkids can go get it later in life!
Lets see, 20 miles at 25,000 lbs per mile, I should go get a little and sell it, fuck off in Colorado this summer and grow a few pounds!
deleted