Copper is Up HUGE….Good or Bad Sign ?

“If copper’s a good indicator for economic trends and equity markets, then it may be sending investors a warning of bad things to come.

Prices for copper futures saw a big rally on Friday, but that doesn’t make up for its year-to-date loss. The July copper contract  HGN3 +6.43% settled at $3.315 a pound on Comex, up 21 cents, or 6.8%, for the session. It’s still trading down roughly 10% for the year.

Copper, which is also known as “Dr. Copper” because of its ability to serve as an indicator, is “leading the way downward,” Albert Edwards, a strategist at Societe Generale, told clients in a research note dated Thursday.

“Copper is acting exactly as it did when I wrote about the impotence of liquidity in the face of the (then imminent) 2007 recession,” said Edwards. “It is giving us an early warning that liquidity will not save risk assets: time to get out of equities.” …”

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