Don't Get Clipped by Outrageous ETF Bid/Ask
The Commodities Barometer: Copper
Just what the Doctor (Copper) Ordered
The above chart of copper sums up what is happening in the
commodities markets, and it has us worried as it sets up a bearish
technical pattern that shows a market that is rolling over.
The price support where buyers have stepped in numerous times in
the past failed in April and the technical pattern that may be
forming would be very bearish.
Copper's recent pop in price thus far is just a normal reaction
after such a large decline through previous support (see Gold's
recent example here).
How copper performs the next few weeks and months will be very
telling as to the inflation versus deflation debate.
Copper is not the only commodity down significantly since
2011. Coffee (NYSEARCA:JO) prices have been crushed, down
over 60%, cocoa (NYSEARCA:CHOC) prices are down 40%, and industrial
metals (NYSEARCA:HEVY) as a whole (including copper) are down
30%. Energy commodities also are down double digits as
a group since 2008.
Precious metals (NYSEARCA:GLTR) and livestock are the only major
commodity groups up in price since 2008, and their price gains are
more than offset by the decline in agricultural, industrial metals,
and energy related commodities. Overall commodities are
coming down in price, not going up, and that is signaling a risk of
deflation, not inflation.
Luckily, we can stay ahead of the curve.
Deflationary forces in commodities are saying that now is
the time to protect your investment portfolio. Even if the
recent weakness in commodities is just a temporary setback, there
are better protection alternatives than the bubble-like gold and
silver. What are they?
ETFProfit Strategy Newsletter
follows copper and other commodities using technical,fundamental,
and sentiment analysis along with common sense to see what isreally
going on and find ways to capitalize in the stock, bond, forex,
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