From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Momentum thrusts abound.
The other day on Twitter Spaces, JC made the point that we hadn’t seen many bullish thrusts this year. He was right. There have been a handful of obscure ones, but nothing really stands out. Until now…
Last week, the High-Yield Bond ETF $HYG registered its largest single-day rate of change since spring 2020.
Not bearish, right?
Then, yesterday, copper futures followed this up by rallying over 5% and booking their largest daily gain in almost a decade.
Also, not bearish.
These types of strong momentum thrusts tend to kick off new uptrends.
We just covered the action in HYG and highlighted the major bottoms that formed under similar momentum conditions.
Today, we’re going to review yesterday’s thrust in Dr. Copper and discuss what a sustained rally from here could mean for risk assets.
Let’s dive in!