....the Copper trade is probably OVER now. Copper ran hard +39% from $3.7 in Feb 2024 to $5.13 in May 2024 and since then has fallen to $4.24 or -17.3%.
....on the 1 year chart, the uptrend line from Feb 2024 has been broken, and what we get has been lower lows
....on the 5 year chart, the recent moves lower looks similar to that sharp move down from May 2022.
...on the All time view chart, you can see sharp moves in June 2008, July 2011, March 2022, this current move down since May 2024 is likely to extend further in similar sharp moves.
...in each of those cases when we saw Copper declining sharply after a big rally, it coincided with equities moving sharply lower in tandem.
Dr Copper is trying to tell us something! What Is Doctor Copper?
The term Doctor Copper is market lingo for this base metal that is reputed to have a "Ph.D. in economics" because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy—from homes and factories to electronics and power generation and transmission—demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper.
KEY TAKEAWAYS
Doctor Copper is insider lingo used in the commodities markets to explain price trends in copper's ability to predict the overall health of an economy.
This is due to copper being a fundamental raw material used as inputs in many industries and products.
Generally, rising copper prices suggest strong copper demand and, hence, a growing global economy
When copper prices decline it may indicate sluggish demand and an imminent economic slowdown.
Commodities from Copper, Lithium, Iron Ore, Oil are all moving south reflecting DEMAND DESTRUCTION in progress and the forthcoming recession.
