When are they going to inflation adjust the penny? #copper #Breakout pic.twitter.com/DSpPQsj2o3
— Phillip Streible (@PStreible) October 14, 2021
Today’s Chart of the Day was shared by Phillip Streible (@PStreible). It’s a daily candlestick chart of Copper futures over the past eight months. Stocks rocketed higher today, but the real MVP was Copper. It’s up nearly 7% in the past two days and it looks poised to test all-time highs. There’s a lot of information to be gleaned from this move. For starters, Copper is a great indicator of economic health because of its numerous industrial applications. If Copper is in high demand like this, it means the economy is probably doing just fine. This is bullish for US Stocks, and even more so for Emerging Markets. It’s also worth noting that the Copper/Gold ratio is resolving higher after going sideways for the majority of the year. As you might know, interest rates are highly correlated to the Copper/Gold ratio, so it’s further evidence that rates are likely to continue heading north.