From the desk of Willie Delwiche.
Key Takeaway: More and more distribution patterns are resolving lower as bearish price action runs rampant across all major assets classes. Even the leadership groups such as commodities experience selling pressure as pessimism grows. Yet, while investors have expressed concern, they have not done much about it. Equity funds continue to attract inflows ($200+ billion YTD, according to DB) and households are hardly flush with liquidity. Perhaps it will take a second quarter in a row of being told not to look at their retirement account statements to prompt some investor action.
Sentiment Report Chart of the Week: Copper Looks Tarnished
Some call it Dr. Copper - the commodity with a PhD in economics. For me, it’s more like Mr. Copper, CMT - Emerging Market technical analyst. Either way, market participants express how they are feeling through the price of copper. Copper was an early leader off of the COVID lows but has moved sideways since early 2021. Now, our trend indicator has rolled over and with Copper dropping below 4.00, a lengthy consolidation is resolving lower. These price and trend developments suggest that the pessimism showing up in the sentiment indicators may be justified for now.
