Dr. Copper Warns the Fed... Keep This Up and Stocks Crash

The markets are now screaming at the Fed that it needs to “back off.”

Copper is widely called “Dr. Copper” due to its close association with economic growth. With that in mind, take a look at the chart below.

First and foremost, we see that Copper entered a “growth” period in November 2016. From this point until recently 2017, Copper maintained in an uptrend.

That uptrend has now ended.

This is a MAJOR warning that Copper is sensing something is VERY wrong with global growth.

Let’s move on…

Secondly, we see that Copper actually began to flatline in October 2017… which incidentally is when the Fed launched its QT program. We also see that since the Fed started this program, Copper has struggled to move higher (red box). And once QT was increased to $30 billion per month in April 2018, Copper began to trend lower.

This suggests that the Fed’s QT program is in fact having a direct impact on global growth.  That suspicion is confirmed by the fact that Copper has gone STRAIGHT DOWN since the Fed announced it would hike interest rates another FIVE times in the next 18 months while also increasing its QT program to $40 billion per month.

Since the Fed made that announcement, Copper has dropped 14% without so much as a bounce.

Put simply, Copper is SCREAMING, “the Fed screwed up.” Not only has it taken out its bull market trendline from November 2016, but it is now collapsing without even a meaningful bounce.

ALL of this can be 100% laid at the Fed’s feet. Copper is sending clear signals that global growth is slowing down… but the Fed has determined to actually ACCELERATE the pace of its QT program.

By the way, stocks tend to follow Copper. And based on this recent collapse in the metal, the S&P 500 could EASILY drop to 2,500.

The time to prepare for this is NOW before the carnage hits.

On that note, we are already preparing our clients with a 21-page investment report that shows them FOUR investment strategies that will protect their capital when and if a stock market crash hits.

It's called The Stock Market Crash Survival Guide...and it is available exclusivelyto our clients.

To pick up one of the 100 copies...use the link below.

https://www.phoenixcapitalmarketing.com/stockmarketcrash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Comments

aqualech Janet smeller Thu, 07/12/2018 - 11:08 Permalink

I disagree.  He seems to believe that the Fed should be responsible for maintaining the valuation of an absurdly over-valued stock market.  He also seems to believe that the stock market and the copper price actually reflect the "economy", and that a drop of the over-leveraged, speculator-driven stock market would signal some economic calamity.  The copper market's small gyrations (several percent) are the effect of speculators in the futures markets, or perhaps even in physical as in the Chinese warehousing of Cu some time back.

In reply to by Janet smeller

captain whitewater chippers Wed, 07/11/2018 - 21:56 Permalink

Maybe that is because nobody wants to believe it happened.

The signs?

How about the air in the bags of food you buy in the stores that replaces the product that USED to be supplied for LESS money?

How about the price of housing going higher with the wages basically staying stagnant?

How about the rising price of everything you buy going up with less being offered for what is being paid?

How about the hassle of taking large cash withdrawals from the major banks that now comes with third degree questions about what you will be doing with YOUR money?

In reply to by chippers

Silver Savior Wed, 07/11/2018 - 23:13 Permalink

I am not worried about copper at all. Trump's inflation will propel it to new unheard of highs. Too bad currency will be worthless though. Just hoard those pre 1982 U.S. cents and all the nickels. 

Those are trade units for small transactions where you will not have to use silver.

Fed-up with be… Dump Thu, 07/12/2018 - 11:07 Permalink

Welllllllll, I guess we all might need a primer on Inflation:

 

>>>>>>  If you saved 100 nickels, then you had a dollar for every one of those

>>>>>>>and, let's pretend that this was accomplished over 50 years

>>>>>>>then you would have 100 dollars

 

>>>>>>>>>>>>>>>>>>>>>which are now worth a nickel each, based on 1968 dollars.

We would be Back to where we started. 

 

Another way to look at it:    the Fed and Banks are TELLING US that our dollars are worthless, otherwise they would pay a real return on parked money.  

 

WE ARE FUCKED!

In reply to by Dump

hibou-Owl Thu, 07/12/2018 - 00:23 Permalink

I now always go and look at the longer term chart, not the preselected article time scale. Yes Copper is looking like a trend change but pullbacks like this have happen many times on the monthly chart.

I would be looking at the size of the bounce, as it's gone straight down, and then the continuation of this trend. If that happens then it's 2008 plus all over again.

silverer Thethingreenline Thu, 07/12/2018 - 07:26 Permalink

If the markets completely crash, like 40 or 50%, everything is fixed to fair market but with huge losses. Since the average American isn't in the markets to the degree the rich are, they should dodge the bullet mostly, but they won't. Because the average American has accepted having other people control their money, so their pensions, IRA's, etc. are in there, too. The lesson is you must be master of your own money.

In reply to by Thethingreenline

El Hosel Thu, 07/12/2018 - 06:54 Permalink

DR COPPER was a doctor when "The Market" was a reflection of supply and demand... Lately, the Doctor is just another "tool" in the great ponzi and makes me wonder if Dr. Copper is any relation to The Great Orangeholeyo ?

lizzoilz Thu, 07/12/2018 - 07:05 Permalink

Shitwave keeps predicting these drastic changes on market futures

 

Futures are up

 

TRADERS.
by ShepWave.com
Posted: 7/12/2018 01:23 EST

 

Two IMPORTANT ShepWave Updates for Thursday have been published.

The technical patterns we have been seeing in the major U.S. equity indexes have given rise to sudden sharp moves. 

Read through the notes carefully regarding upcoming signals in the major U.S. equity indexes.  LONGER TERM Traders and Investors will want to be watching closely.

WTI Crude Oil Traders be on alert. So far the signals we have been seeing in the WTI CRUDE OIL index have been spot on and could directly affect the equity indexes. The sudden move of Wednesday, July 11th will need to be examined patiently. Look at the futures as of this time (1:15 AM ET Thursday Morning USA).

GOLD traders--nothing new here.  Use same guidelines as we have been showing. But be ready for a change.

VIX traders--YOU ARE ON DECK!  B

Truth Eater Thu, 07/12/2018 - 07:14 Permalink

This is a bullshit article.  The Fed can't get blamed because of this.   In fact, the Fed is the cause in many ways of the over-inflated non-market system.  And what is the fair price of copper?  If it is 20 cents, fine.  If it is $20, fine.  Blaming the Fed for everything is just stupid.  There is a whole lot more behind the market tampering and the vampire squid money system.

gmak Thu, 07/12/2018 - 08:45 Permalink

Stocks won't crash until "smart" money has done distribution to all the usual bag-holders. it's taking longer this time around.

Silver Savior Thu, 07/12/2018 - 18:32 Permalink

Just out of curiosity what was the metals scene like in 2011? I did not start stacking until 2013. Premiums through the roof? Shortages of silver? I wished I was in the metals scene pre 2013 too.