Copper is no doubt one of the most economically sensitive commodities in the world. Many investors even say the metal has a PhD because of its predictive value. The current rally in copper has been incredibly strong. So strong, in fact, that it makes me question my secular bear market thesis. Of course, it’s important to note that the Chinese stimulus plan has had a huge impact on the price of copper and will likely continue to influence prices in the coming quarters. As for now, the price surge has to be taken as an enormous vote of confidence in economic activity going forward. In the near-term, however, copper is already 5% off its highs and continues to struggle in today’s market. The low volume rally in stocks is not being confirmed by copper which is currently trading flat on the session.
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