Monday, May 9, 2011

Doctor Copper Breaks the 200 Day Moving Average

While I think copper to a large degree has become dominated by the whims of the Chinese buyer, many still view it as an indicator of broader economic activity since its an input to so many items.  If still relevant as such, the drop to (and through) the 200 day moving average Friday should be troubling.  The red metal is up 4 cents today but still below that key level at $3.99.

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This move along with the large drop in yields since mid April on the 10 year bond the past few weeks, might be confirming that awful ISM non manufacturing number we saw last week.  At this point equity markets could care less as it dances with every whim of the U.S. dollar, but these are secondary indicators one should be taken note of....

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