Fibonacci Financial

Dr. Copper is Bullish right now – But keep watch!

Copper has often provided an early signal as to the direction of the economy because it is a high demand base metal used in industry.  You will notice that as the US Stock Markets were hitting new lows (bullish sentiment at 8%!) earlier this year, Copper was holding well above it’s lows telling us that the bottom was in (short term).

Copper price action was one of the prime indicators (including elliot waves, momentum, sentiment & other indicators) that lead us to conclude that there would be an Obama Bail Out Mini Rally.  Now, besides watching for an upcoming high in this Bear Market Rally in stocks, Dr. Copper may also provide a clue as to when Deflation has returned.  Watching Dr. Copper doesn’t provide certainty, but it will provide that very necessary edge when looked at in conjunction with other indicators.

I am fairly certain Dr. Copper will have a critical diagnoses to share with us about the economy and the stock market before the end of the summer – stay tuned!

What Are All Those XXXX’s and OOOO’s on the Charts?

( No Dear Reader They Don’t Represent Hugs n Kisses! )

Several readers have indicated that they are not familiar with the point and figure charts that I use for illustration purposes in the blog.  John Murphy (world class technical analyst) provides an excellent overview of Point and Figure charting on his web site StockCharts.com.  If anyone is interested in why I use these “old fashioned” P and F charts drop a comment requesting additional information.

Do not get the idea that you can trade or make investment decisions from my blog entries.  These are an introduction to my services and do not constitute investment advice.

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