|
Everything is rosy in the garden and that is nice.
But my cautious head has been asking are markets getting a little carried away? You see, economically things will get a lot worse before they get better and what the punters are banking on is that this is the beginning of the new world. Alternatively those punters that got this run up may at some point in time take some profits. They are not there for life.
Copper is oft thought of as Noah’s white dove after the big storm and maybe that has some validity.
Copper like many metals and currencies has had strong moves and this may continue in the coming year or so – moves in both directions. Let’s look at a couple of charts for copper – the daily, followed by the weekly:
click to enlarge
click to enlarge
The daily chart shows a classic wave four pullback – but we know that wave three can go right up to the projected wave five before we see a pullback. But you can say that all is fine and dandy with the short term projection. And it is sort of consistent with what we are hearing out of China.
But the weekly chart is still projecting a savage low and at this stage I remain open minded about that with an inclination to the view we will see that leg down.
But the key 'takeaway' from this is that there is movement at the station. And in fact there has been plenty of movement in futures. And so those traders who are 'sitting pat' waiting for ‘mana for heaven’ you need to take control and become pro-active.
At Trading Tutors Newsletter we try to provide some training, a different point of view, some humour too, maybe a useful projection or whatever but you must take responsibility for your own guidance.
I will chance to say that proportionally, more money was lost in this bear market, by those that relied on ‘advisers’ compared with those that actively manage their own account.
There is a lesson to be learnt in that.
Enjoy the ride
Tom Scollon
Chief Analyst
|