Copper Review |
Copper's overall trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.
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The invisible hand can speak about the global and domestic economy, inflation, and stagflation through copper and the economic cycle. The economic cycle is discussed in the Economy & Stock Report. We're seeing some interesting trends that will punish the middle and lower economic classes. We will be talking more about copper in the Commodities & Energy Report, and inflation in the US Bond Report. Not everything boils down to timing markets and trends!
Welcome to the Jungle of Stagflation |
Copper shows Triple Up alignment in the Matrix (Line 26, Trends Tab). The primary trend flipped up 5 months ago, and has produced 22% gross return.
The composite trend has been aligned triple up for 65 days, and has produced a 23% gross return. This alignment; therefore, is driving the primary trend. The daily price and time cycles are 3 and 2.78, respectively. Cycle reading above 2 define cycle extension and short-term vulnerability for copper.
Copper, a leading metal for global economic activity and war, is rallying despite a change in the economic cycle in late Spring of 2024 (see chart 1). A cage match between copper and the economic cycle is unfolding. Economists call this battle Stagflation. Intensification of war, the proxy war strategically morphing into World War 3, likely explains the backdrop.
Chart 1: Economic Activity Composite
Copper represents the leading edge of inflation that central bankers are convinced can be contained by interest rate policies, 😂😂. Welcome to the jungle of rising social disorder from 2024 to 2028. If you believe people are angry now, just wait. As the local at the gas station says, “you ain't seen sh*t yet.” Increasing inflation and a slowing economy, will crush the middle and lower economic classes in Western economies (see chart 2).
Chart 2: Real-Time Inflation Oscillator
Red highlight box says inflation is not going away. Words, short-term interest rate policy, or core beliefs will not fix this. We're heading towards Crash and Burn, the only consistent solution described by history.
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