For those who are not long time listeners, readers, or viewers of yours truly pages and podcasts from the past, I’m one of those strange people who actually believe in charts, history, and more history.
And Dr. Copper today just sent a major red alert to the economy.
So yeah, I’m an old geek.
Per Investopedia, this is why it is called “Dr. Copper:”
The term Doctor Copper is market lingo for this base metal that is reputed to have a “Ph.D. in economics” because of its ability to predict turning points in the global economy. Because of copper’s widespread applications in most sectors of the economy—from homes and factories to electronics and power generation and transmission—demand for copper is often viewed as a reliable leading indicator of economic health. This demand is reflected in the market price of copper.
Usually when a commodity makes a break out move, as gold has recently, one waits for further confirmation. With gold, I’m waiting on a solid move above $2200 per ounce with contract volume to confirm a short squeeze is about to occur and slaughter the big banksters who have been naked shorting precious metals for decades and deserve to lose a billion or two for their illicit activities.
But Dr. Copper is a different story.
The good doctor confirms the health or ills within an economy. Usually, strong copper prices indicate accelerating growth of housing, auto manufacturing, etc. However, there are exceptions.
Such as artificial shortages or currency fluctuations which indicate that volumes albeit lower than normal, do not validate the growth in economic activity.
As of this moment, the West is experiencing the latter.
The chart from Dr. Copper says it all today:
If you’re short, you have my permission to panic.
Shortages have begun due to international issues which impact the global market in a major way. Yet the United States and Western Europe are losing sway over developing, as Trump called them, s***hole nations which provided cheap raw materials, thus inflating prices faster than the market can absorb them.
Meanwhile, the EV boom is collapsing while the EV charging station boom is expanding under idiotic government mandates in the West thus creating further strains on the supply of the metal along with the threat of a global war.
Add all of this up and the insanity of a potential world conflict between numerous nations of the old East and Global South and the reality hits home quickly:
Inflation is about to pulse (as I predicted) and create a new, unique financial crisis by next winter.
Dr. Copper never misses a correct diagnosis.
Good luck.
Visits: 2
