Commodity ‘Blow-Off’

Throughout market history, commodity tops usually end the same way … Boom!

This time around for copper, it appears to be no different.

If we go to the futures chart (link here), it’s self-explanatory.

From the link, select ‘MAX’ on the chart and we see, copper’s pulling back from all-time highs.

As always, it could somehow recover right along with silver (update due later).

However, using proxy Freeport-McMoRan Inc., (FCX), it has already printed an outside down weekly bar after posting a decade-long, new high:

That translates to ‘not good’ for the bulls (not advice, not a recommendation)

Freeport McMoRan, FCX, Weekly & Daily

Price action appears to be reversing or at least testing the resistance (blue) line; attempting to see if that line has now become support.

Moving in closer, we see the outside down weekly bar that has entered ‘back into the range’; just touching the Resistance/Support area.

If we get even closer and look at the daily, price action’s back in the trading range (bearish) and has also posted a divergent MACD (bearish).

Looking at the charts, we’re at The Danger Point®

This is the place where the market makes its decision (not advice, not a recommendation).

Inflation, Deflation, Stagflation … or … ‘X-Flation’

It’s interesting, but then again not, watching so-called experts pretend they have it figured out:

It’s inflation or stagflation or whatever.

How about the possibility of ‘non-of-the-above’?

The past four years have put us into a new construct, a new paradigm.

Before the 1970s, nobody even knew that ‘stagflation’ existed. It had never happened before.

So, what new construct is going to emerge (and be given a name) that has never happened before?

That’s the question.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279