What Is Copper Telling Us? - 11 May 2011

Copper just "broke the box"...

HERE IS one of the biggest market stories you're not hearing about right now. Copper just "broke the box," says Brian Hunt in Steve Sjuggerud's Daily Wealth.

Copper is a vital ingredient in automobiles, plumbing, electrical infrastructure, electronics, and commercial construction. This makes it one of the most important raw materials in the world.

Like most assets, copper was clobbered in the 2008/2009 credit crisis... then enjoyed a stupendous "reflation" rally that sent the metal to $4.60 per pound this February. Copper spent the next three months drifting in a sideways pattern some traders call a "box." As you can see from the chart below, copper just punched through the bottom of the box...

It's too early to pronounce the end of the copper bull market. This could be a temporary setback. But at the very least, it's a "punch in the gut" for the commodities uptrend... one that will take months to recover from.

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Steve Sjuggerud, 11 May '11
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Former stock-broker, mutual-fund vice-president and hedge-fund advisor Dr. Steve Sjuggerud is the founder and editor of True Wealth. Launched in 2001 and now one of America's best-followed newsletters for private investors, True Wealth also provides free analysis and ideas in the Daily Wealth email service.

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