There is a long standing notion that Copper is the metal with a Ph.D. in economics. Copper will tell you the real outlook for the global economy. As I pen these thoughts today, I am watching the Dow and the S&P respond favorably to Ben “accomodative policy” Bernanke and his announcement that he will continue buying assets each month.
But, despite the performance of the Dow and S&P, the price of Copper as evidenced by the weekly chart embedded herein, is struggling.
From the Summer 2011 highs, Copper traced out a classic ‘W’ pattern which culminated at a point D in early 2012 after which Copper plunged again.
From the lows made in the Summer of 2012, Copper has now traced out a classic ‘M’ pattern and is trying at this time to establish a point D. If this pattern is to be a valid one, we should see point D assert itself imminently. Once D is established, Copper should stage a rebound of sorts.
If this is not a valid pattern, we will see Copper prices fall further which will not say too much about the state of health of the global economy.
So, critical juncture for Copper. Watch carefully. If D gets firmly established, take a look at some Copper related equities…..
I have also marked on this chart some green stars. These denote the times when heliocentric Saturn and Mars make 0, 90 and 180 degree aspects. In the heliocentric natal chart of Copper futures (Copper futures started life on July 29, 1988) one can see that Mars and Saturn are at a 90 degree aspect to one another, hence the ongoing importance of these two planets when watching Copper prices.