Because of our long weekend, I have not been able to prepare my...

Because of our long weekend, I have not been able to prepare my usual notes.

Need and want.  We need copper for the technology that is taking over our lives but at the same time we want gold as a protective safety shield.

I have been concerned that suddenly the whole world wanted copper.  This type of situation always makes me nervous.  At the same time gold had climbed to new all-time highs as investors viewed the world and all the problems currently facing us. The first spark of bad news caused the rout that happened at the end of last week.

Was the sharp correction that took place sufficient to clear any exuberance?  Possible, but we need to see a bit more evidence that this is taking place.

The chart of copper highlights the situation.  Having risen sharply, the correction brought the price back close to its uptrend.  I think it is likely that we could see copper trade in a wide band now from roughly 4.40 to 4.70.  If we could build some sort of platform in this range, we might then see copper continue its bull market.

And for something different – this is the daily chart of the XJO. Note that I have the potential double top drawn in.  But at the same time, I have been able to draw in a perfect half circle.  Just amazing how accurate it is and how it collects the points on the charts.  So, does this half circle pattern rather dramatically highlight the potential double top or….is it suggesting that the index is going to break topside with a powerful move to new all-time highs? This same pattern appears on the Dow and the NYA. I think we could say there are a few interesting weeks coming up.