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This is a rally centered around technology stocks, airlines, consumer discretionary, and precious metal miners. At the opposite end of the spectrum, the industrial material complex is decidedly not in rally mode. If you keep that in mind, you can at least hone in on the areas of the market that are working. Without question, I suspect the increasingly protectionist Chinese command economy may be one of the root causes of the weakness, in addition to a burning Europe, of course.
As I write this, I see that Freeport McMoRan is losing yesterday’s lows and giving the bears fodder to call today’s rally a complete phony. I wrote yesterday that I thought copper had ceased being an accurate leading market indicator. I want to precisely lay out why I am saying that:
Given the fact that it had not led us equities down over the summer, and in fact had held its May lows even when the S&P 500 was, for all intents and purposes, crashing. Well, now copper is losing its May lows. Again, you have to ask yourself whether this is the mark of a fresh leg lower, or whether copper was simply the “last man standing,” and needed to be taken out back and shot to give some closure to the summer correction.
I suspect it is the latter scenario. It’s your money and your decision, and the market will be the final arbiter.
Double-click on the chart below of copper futures to see what I am talking about re: holding the May lows during the summer crash and only now losing them.
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i guess u got to decide what movie ur watchin, rocky or the sting. im still in cash,bot some gld at the open.
Well, The Sting was a badass movie.
i think thats what were watchin,,,lol
XME metals & mining index, breaking down