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Tuesday, March 19, 2013

Dr. Copper

Old Dr. Copper might have a serious break down going on.  Here is the weekly chart of JJC the copper ETF.

It looks like JJC formed a triangle pattern after the big crash in 2011.  It has now broken the lower trend line of that triangle.  That is a 1.5 year pattern it may be breaking down from.  It is pretty hard to say the global economy is picking up.

Here is an ETF based on copper stocks (COPX).

This ETF may be forming a triangle pattern of its own.  It has not broken the lower trend line like JJC, but it is showing a pattern of lower highs.  Are these stocks heading lower with JJC breaking down?

Here is the latest weekly chart of the emerging market ETF EEM.

This ETF appears to be breaking its up trend line from the low last June.  Not exactly showing great strength in what is supposed to be the engine of growth for the global economy.  Is there enough weakness to affect corporate profits?  Is the global recession getting worse?  Will western markets get worried about global growth at some point?  Will the global economy somehow turn around?


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