From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
Copper was a critical piece missing from the intermarket puzzle heading into the fourth quarter.
Just last week, copper was testing year-to-date lows and looking vulnerable for a downside break. Meanwhile, energy futures and interest rates were rising, and cyclical and value stocks were getting back in gear.
The mixed signals were impossible to ignore. It’s not likely that the recent breakouts in crude oil and the US 10-year yield would hold in an environment where copper is breaking down.
Dr. Copper is a great leading economic indicator and critical to the global growth narrative. Let’s see what it’s saying. [Read more…]