But what about copper ?
- Thread starter syswizard
- Start date
Well Oldtime and CDCaveman, I don't dispute either of your statements. I think the same logic can be applied to the crude oil market. Given the weak jobs market, and relatively low inflation levels, that market continues to befuddle me. I keep asking myself "Why is gasoline over $3/gallon ?". And then project the next one: "Why is copper over $3/pound ?"
The federal budget and the debt ceiling issues are coming up for resolution. I think the expectation right now is for a solid resolution to both problems. In this market, you must "anticipate" the "anticipations" (and keep those stop loss orders in place) !!
Bernanke hits dovish note
Nation's top central banker says the worst thing to do would be "to raise interest rates prematurely,"
and downplayed concerns that the bond-buying program will head to higher inflation or asset bubbles.
Here we go AGAIN...with Bernanke intent on burning any commodity bears right now....and insuring an eventual disaster.
Nation's top central banker says the worst thing to do would be "to raise interest rates prematurely,"
and downplayed concerns that the bond-buying program will head to higher inflation or asset bubbles.
Here we go AGAIN...with Bernanke intent on burning any commodity bears right now....and insuring an eventual disaster.
Goldman bullish on copper - has target of $3.83 for 2013
That's a mere 20 cents north of current prices.
Anyone betting against these guys ?
http://www.marketwatch.com/story/go...eports-preferences-2013-01-16?dist=beforebell
That's a mere 20 cents north of current prices.
Anyone betting against these guys ?
The positive correlation between Copper and the S&P 500 used to hover in the low 90 percentile range a couple years ago which was a significant and exploitable statistical edge, but these days the two year correlation is only 74% daily close-on-close.
The best correlation you will find to Copper are of course the international mining stocks, and in terms of other commodities the best correlation to Copper is Rubber. Comex Copper has a positive correlation to the Tokyo Rubber contract at 94% daily close-on-close.
Crude Oil and the S&P 500 have a 92% two year positive correlation daily close-on-close. CL and ES continues to hold up.
A few years ago, the Canadian Dollar was very highly correlated to the CL contract and I had a few clients really make some hay with that trade. These days, that correlation is only about 72%. In fact, with the mining resources, the Canadian Dollar has a 87% positive correlation with the Copper futures contract, which is quite healthy.
Speaking of currencies and links to mining resources, the Australian Dollar over a 15 year period has a 90% positive correlation to Copper, but over the past 2 years the correlation dips way down to 67%.
The best correlation you will find to Copper are of course the international mining stocks, and in terms of other commodities the best correlation to Copper is Rubber. Comex Copper has a positive correlation to the Tokyo Rubber contract at 94% daily close-on-close.
Crude Oil and the S&P 500 have a 92% two year positive correlation daily close-on-close. CL and ES continues to hold up.
A few years ago, the Canadian Dollar was very highly correlated to the CL contract and I had a few clients really make some hay with that trade. These days, that correlation is only about 72%. In fact, with the mining resources, the Canadian Dollar has a 87% positive correlation with the Copper futures contract, which is quite healthy.
Speaking of currencies and links to mining resources, the Australian Dollar over a 15 year period has a 90% positive correlation to Copper, but over the past 2 years the correlation dips way down to 67%.