Chart, page-219

The appreciation of the USD (high demand for USD) not only directly leads to a fall in commodity prices (paired to the USD) but also wreaks havoc on developing economies whose debt is priced in USD and is a sign that liquidity is being sucked out of markets (the dollar milkshake theory). Dr Copper has made her diagnosis on the global economic outlook I would say.

The way I'm reading copper is that there is still nothing preventing copper from going lower in the short term.

In the chart below, the DXY (which use to be referred to as the "Dixie" which I miss) is inverted in blue and copper is in orange on a log scale. It shows the inverse relationship between Copper and the USD.






I'm a copper bull but in the short term I'm a bear on everything. If, like me, you think that copper is in a secular bull market (starting with the low of 2016) then once this correction is over it should recover to above US$4.