I am fascinated by the relaionship between copper and the stock market. I also find trading volume to be a valuable tool. Let me explain.
The above chart shows what I mean (click on the chart to enlarge it). Strong volume following a sharp decline suggests a bottom is close.
A parabolic price rise accompanied by soaring volume spells lower prices ahead.
What is the relantionship between copper and stocks? Stocks bottomesd in June following a stable copper price. Stocks began trading in a range after the spike in copper.
What is copper saying about the future of the market?
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager
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