Wednesday, February 16, 2011

What is Dr. Copper telling us?

Copper is now almost 20 cents off its all time high in a matter of 2 days.. this is a very bearish indicator for stocks. the pattern is likely an indicator to reduce long stock holdings, or get short if you haven't already.


look for the S&P 500 to retrace back to its 50 day moving avg, and perhaps even a test through it. if the 1261 level is broken for the Egypt riot lows it can easily head to 1180. for now lets keep the 1270 to 1290 area in mind.


look for the Canadian Dollar to fall vs. USD, the recent selloff in Crude hasn't yet affected the USDCAD but it could rise to the 1.02 are in coming weeks good for 300 pips

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