https://www.globalmacroresearch.com/wp-content/uploads/2016/06/50-Park-Capital-white-background-LOGO.jpg 0 0 firstname.lastname@example.org https://www.globalmacroresearch.com/wp-content/uploads/2016/06/50-Park-Capital-white-background-LOGO.jpg email@example.com 12:36:552014-03-11 12:40:11Copper vs US Stocks- A Closer Look
Copper Violates Major Support:
Last week, I began writing about Copper- here. Since then, copper has gone straight down, violated multi-year support and caused fear to spike regarding the situation in China and other emerging markets.
Changing Global Economy:
Typically, copper is known to have a PhD in Economics because it is used to actually “build” stuff. As the global economy develops/matures -economic growth has shifted from building “stuff” to building “ideas.” In the new information/idea age (where most economic activity is based on exchanging information/ideas, not tangible goods) – copper is no longer as important to the global economy as it was it was during the industrial age. Don’t take my word for it- just look at the charts. For years, copper has been going virtually “no-where” or steadily falling even as the major US averages have soared to record highs.
Will this time be different?
As always, I’ll let the market decide. Until I see heavy distribution (institutional selling) in the major averages. I continue to give the market the bullish benefit of the doubt.
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