Copper Shows Market’s Mettle
In an otherwise calm day, some of the bigger picture economic themes
continue to provide the backdrop for futures markets.
Implosion-5 List
member copper’s
(
HGH1 |
Quote |
Chart |
News |
PowerRating)Â downside
momentum is carrying over. Basis March struck a
New 10-Day Low yesterday on the near-10-year low in the NAPM report. The
report provided additional evidence that the economy is slowing and copper, an
industrial metal, is closely correlated with economic activity. March Copper is
off to a new low, but in more subdued fashion. Monitor this one for a squeeze (Turtle Soup)
reversal.
The negative sentiment in copper is carrying over into
precious metals. Both silver and gold made it onto the New 10-Day Low List
as well. Silver is also an Implosion-5 List
member, and has seen nothing but downside this morning, making it an excellent
Off The Blocks
play this morning. The March contract is still pressured and trading near its
low of the session (and of the contract), down 5.0 at 454.5.
Gold continues to plunge out of its “swing”
double top. Last week’s engulfing bar at the swing double top and wide-range
bars are providing additional downside momentum this morning. The metal’s
failure to rally in the wake of the dollar’s continued collapse last week is
also a sign of weakness. March gold
(
GCH1 |
Quote |
Chart |
News |
PowerRating) is holding at the low of the
November consolidation band and is down 1.4 at 268.6.
Carolyn Boroden sent an intraday Nasdaq 100
(
NDH1 |
Quote |
Chart |
News |
PowerRating) intraday analysis to the TradersWire, showing support at 2134-2148. The market just retested the intraday low and held just below Boroden’s Fibonacci cluster at 2131. If this area fails, look at 2079.