Crossing The Rubicon

Well, admittedly it wasn’t as dramatic as Caesar’s crossing – although I’m sure there was a lot of polished copper (and sharpened steel) involved.

Now, after my weekend update I hope many of you took note of copper’s action today:

And there she goes – that 3.9 mark finally gave way and yes, as suggested, this is potentially medium to long term bearish for equities. Unless of course ‘this time is different’ and stocks continue to shrug off copper’s lead.

Well, I would not bet on that – thus I pulled up my P&F chart to project a possible target range for copper. And based on my 0.05 point box size this breach promises to eventually get us to ~3.35. But not via a one-way express elevator – I don’t think it’ll be that easy. My musings on trading this setup below:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
[/amprotect] [amprotect=1,13,9,12,5]

It’s always possible we proceed straight down but I would not recommend to chase this move unless you got positioned at 4.0 or above. We just pushed outside both Bollingers on the daily, thus there is a possibility of a ‘last kiss goodbye’ maneuver at which point a retest variation sell would be the setup I’d prefer. Perhaps Scotty can chime in if/when we get there.

Otherwise I don’t really have much on my plate right now. My weekend musings stand and there’s really not much to add regarding equities. Thus we simply sit and wait until the current cat and mouse game (i.e. the hundred handle summer hurdle) resolves.

Cheers,

Mole