Penny For Your Thought

The summer of pain is upon us – although some of you still believe in miracles I personally don’t think that the bulls are going to let this juicy opportunity to torment the bears slip through their fingers.

Copper has long been and remains to be one of the most reliable litmus tests on the global economy. There even was a time pennies were made from it – of course after nearly 100 years of continuous fiat currency inflation courtesy of our friends at the Federal Reserve (over 90% loss in the Dollar’s buying power since the Fed’s inception in 1913) we simply can’t afford to use copper anymore. Heck, in the future they may use plastic to make pennies – who knows – probably with a big ‘Made in China’ stamp somewhere on the back.

Even though I am not a fundamental trader I have learned to appreciate copper’s value (pun intended) when it comes to calling the shots early against equities. And it’s one of the few charts that seems to make sense these days – most of my other fancy long term charts are stuck in complete limbo mode for the past few weeks. So, let’s take a look:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. The rest of you guys will have to wait until tomorrow – sorry. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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The one thing that stands out is the simplicity of its wave pattern, especially when compared with the crimes against humanity stunts equities are currently engaged in. Copper actually started to retrace in late May and seems to be pushing towards the completion of a {c} wave right now.

Compare that with equities – boy, what a jumbled mess – which I can only count as some kind of expanded flat right now (EWP – page 47 – fig. 1-36). If we are lucky we may get a running flat but at this point I would not bet against copper, which is still pointing straight up.

That’s all I have tonight – the wave count scenarios have not changed since this afternoon – as the tape hasn’t moved much since the early morning finger of God to the upside (or should I call it Ben’s big middle finger?).

Keep it frosty guys – we’ll make it through this.

Cheers,

Mole