Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Doctor Copper Still a Bull *PIC*

Despite a relatively rocky correction over the past couple of months Doctor Copper has managed to maintain a bullish price pattern and stay above its Monthly directional line to maintain its “bull market” status-- see top chart below. Copper earned the preface “Doctor” because over the decades it’s a proven a valuable leading indicator for the health of the economy. The logic is that if copper is in an uptrend it’s because there’s global demand for it, and therefore as long as end users of the “working class” metal are willing to pay higher prices for it, then the economy must be growing, as opposed to contracting.

In comparing copper to the S&P 500 stock index above we can see that the two do have a respectable correlation. We can also say that heading into a new month both are in bull markets, and for the health of the global economy, that is a good thing.

Jay Norris is host of Live Market Exercise at www.Clovernest.com and the author of Mastering the Currency Market, McGraw-Hill, 2009.

DISCLAIMER: Futures & Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor!