Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Copper Shows Bearish Message For Stocks

by May 18, 2023
May 18, 2023
Copper Shows Bearish Message For Stocks

Most of the time, the spot price of copper is very well correlated with what stock prices do. Occasionally, there is a momentary squeeze in the copper market, resulting in a spike top that is not reflected in stock prices, and that is quite ordinary. We saw several such spike tops in 2021, and once more in early 2022.

A better indication comes from outside of those brief squeeze events, when we see a more persistent divergence between the two plots. We are seeing such a divergence right now, with the NYSE Composite Index ($NYA) still at a higher low, but with copper prices pushing downward in a lower-highs, lower-lows pattern that defines a downtrend.

Most of the time, when these two plots disagree, copper usually ends up being right about the direction in which both end up heading. That is an alarming insight right now, and it fits with the poor breadth numbers we are seeing. The NYSE’s A-D Line shown below is also making lower lows, in conflict with the higher highs in the S&P 500 and NDX thanks to the upward pull by Apple (AAPL) and Microsoft (MSFT).

The message of both copper and the A-D Line is that liquidity is tight, and you can thank the Federal Reserve for achieving the goal it has set out to accomplish. They think that they can suppress price inflation by removing liquidity from the banking system via higher short term rates and “quantitative tightening”, or QT, meaning selling off their bond holdings. Whether that will actually suppress inflation is a separate question, but there is no doubt that it is hurting financial market liquidity.

0
FacebookTwitterGoogle +Pinterest
previous post
Hearing Remarks: Protecting American Families from Higher Taxes
next post
Simplify Your Analysis By Using Moving Average Lines

You may also like

Spot The Warning Signs of Bankruptcy!

March 15, 2024

Natural Gas and Oil — Always on the...

May 18, 2023

S&P 500 Makes a New All-Time High By...

April 27, 2024

DP Trading Room: Market Still Holding Up

November 7, 2022

Will the Generals follow the Troops?

March 24, 2023

Classic Short Setup in Tech

February 22, 2023

MEM TV: Here’s How to Trade Explosive Stocks...

May 18, 2024

DP Trading Room: Finding Pockets of Strength in...

August 14, 2023

The Hoax of Modern Finance – Part 1:...

November 29, 2023

Our Very Last Trading Room

April 28, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump’s Debanking Order Calls for Investigation, Something Tennessee Should Have Done

      August 7, 2025
    • $93 million in aid to fight malnutrition headed to 12 African countries, Haiti, State Dept says

      August 7, 2025
    • $93 million in aid to fight malnutrition headed to 12 African countries, Haiti, State Dept says

      August 7, 2025
    • America’s Not-So-Secret Secret Police

      August 7, 2025
    • Poll: Nearly 1 in 4 Americans Think They Have a Personal Social Security Account

      August 7, 2025
    • Republican senator claims RFK Jr. mRNA vaccine decision undermines Trump agenda

      August 7, 2025

    Categories

    • Business (8,704)
    • Investing (2,185)
    • Politics (16,335)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved