Morning Report Thursday 15 January 2015
** Please see our Video Market Update 13th January 2015, Gold, Outlook Piece and Correction Update
Are equities now listening to Market Matters because of Dr Copper?
Copper is often referred to by market traders as “Dr Copper”, due to its ability to pick the direction of the global economy. In just 48 hours, the copper price plunged 11%, following recent movements in Iron Ore and Crude Oil. I remain bearish copper, targeting the $US150/lbs area, another 40% lower – see chart 1. This is one of a number of reasons why I have no interest in investing through resource stocks at present (they will present some trading opportunities).
• Copper is reputed to have a Ph.D. in economics because of its ability to predict turning points in the global economy. Because of copper's widespread applications in most sectors of the economy - from homes and factories, to electronics and power generation and transmission - demand for copper is often viewed as a reliable leading indicator of economic health.
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