Has “Dr. Copper” Signaled a New Round of Inflation?

While the midterm elections are next week, there was massive speculation about China loosening COVID-19 restrictions.

Additionally, with a lack of global copper inventories, metals and miners erupted on Friday.

Global X Copper Miners (COPX) found significant support twice at the 200-week moving average. COPX sold off at critical support in early July, retested the summer lows in early October, and formed a double bottom.

COPX also displayed strong momentum on the Real Motion Indicator over the last several weeks.

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So, what does this mean for investors, copper prices, and, by extension, copper miners’ share prices?

copx copper miners etf trading higher rally bullish buy signal chart november

Global X Copper Miners (COPX) found support twice at the 200-week MA. The doctor is back—Doctor Copper, that is. 

This metal has a Ph.D. in its forecasting ability and as a leading indicator of inflation and expansion.

COPX leading is also significant because copper miners tend to lead the price of copper first, adding weight to our belief that there is a sequence of events unfolding in the commodity Supercycle.

According to conventional thinking, a thriving economy will see extensive development of homes, offices, factories, warehouses, and retail, fueling demand for copper, a vital construction component. 

However, it is possible that the electrification of everything like EVs that need an enormous amount of copper will supersede any slowdown in the aforementioned areas. 

Copper prices should continue to rebound as global inventories have plummeted. 

If you’re looking to add exposure to copper miners quickly, the Global X Copper Miners ETF (COPX) is a prudent choice.  

We can help you trade commodities and protect against wild price swings. Please reach out if you would like more information about trading commodities.

Mish in the Media:

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Cheddar News 11-03-22Fed Hawks Turn Markets Blue

Cavuto Coast to Coast 11-03-22Fox Business, The Fed’s Dilemma

Stock Market ETFs Trading Analysis & Summary:

S&P 500 (SPY) 370 support and 377 resistance; same as before

Russell 2000 (IWM) 174 support and 181 resistance; same as before

Dow (DIA) 322 support and 327 resistance;

Nasdaq (QQQ) 261 support and 269 resistance; same as before

KRE (Regional Banks) 62 support and 65 resistance; 

SMH (Semiconductors) 188 support and 195 resistance

IYT (Transportation) 209 support and 213 resistance

IBB (Biotechnology) 127 support and 132 first resistance; same as before

XRT (Retail) 58 support and 63 resistance; same as before

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.