|
The Scottish traditional ‘Will ye no come back again’ that laments the prospect that Bonnie Charlie may not return reminds me of metals. Will we see a return of the good times or will they not return like Bonnie Charlie?
Certainly metals are struggling at the moment in response to numerous fundamental issues which I will not go into, as it is all in the chart! So let’s look at the mother of all metals – copper.
click chart for more detail
Copper has skyrocketed almost five fold in five years! As you can see it has come well off its high. If you look at the daily chart below it’s not hard to envision the prospect of some further easing.
click chart for more detail
No matter how I twist and turn Elliott inside and out I cannot find a chart that suits my view that we may see the prospects of a rally in the not too distant future.
We cannot expect that markets – of whatever description – will always be predictable. There is often some missing information at market tops and bottoms.
If we assume from the daily chart we are not far off a mid-term low then we should be prepared for the unexpected.
Bonnie Charlie may never return but a rally in resources will – it is all in the timing!
Enjoy the ride!
Tom Scollon
Chief Analyst
|