Monday, May 17, 2010

Docta Coppa

I've been writing a lot lately about copper. Many have dubbed it "the metal with the PhD in economics" due to its widespread use in many phases of the economy. Think electrical wiring, plumbing and pipes, air conditioning and heating, cookware, computer circuit boards, medical imaging and making brass.

Anyway, the point is that when copper prices fall it is due to perceived future demand from the economy falling off. If you look at copper trading today, the economy is in for some trouble.

Check out this giant metals miner - BHP Billiton. That is a completed weekly double top. I don;t care if the market came back to close positive today, things are weak.

2 comments:

CEO Trader said...

Agree. We will have to wait and see if it retraces past that neckline on good volume.

bmbull said...

Base metals ETF - DBB - looking very 'double toppy' as well on the daily, and has now broken both the 50-day and 200-day.

The signs are there.