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posted on 04 December 2016

Will Copper Have A Correction?

Written by , Rick's Picks

Is 'Doc Copper' Predicting Severe Inflation?

Doc Copper has swung wildly since November’s moon shot (up as much as 31% in less than 2 months) and seems likely, on the visual evidence of the charts, to attempt another spectacular leap.

rocket.shot.380x200

Assuming the gyrations of the last three weeks have been a consolidation for a follow-through rally, notice that much of the action has taken place just beneath the November peak. That bulls mean business is further affirmed by the slight penetration of the November peak on the second run-up.

copper.2016.apr.dec.02

However, unless it is the return of severe inflation that copper is predicting, the correction will probably need to take out the key low at 2.4260 (see chart above) to give a second-wind rally some running room.

Although I have serious doubts that serious inflation is possible in an economic world that has amassed debts aggregating to more than a quadrillion dollars, I will let the chart speak for itself in the weeks and months ahead. In the meantime, for trading purposes, the sale of option straddles targeted on the 2.50 strike seems like a good bet.


Author's note: If you don’t subscribe to Rick's Picks, you can access the chat room and all of Rick's trading 'touts' instantly by clicking here for a no-risk, two-week trial subscription.


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