Copper May Signal Weakness for Broader Economy

By on May 10, 2010

A couple of blogs point out that copper has broken below its 200 day moving average. Supposedly copper prices are predictive of future economic activity. If this is the beginning of a bear market in copper there could be economic weakness ahead.

Pragmatic Capitalism points out that the 50 day moving average crossing below the 200 day moving average would be a much more valid signal of a bear market in progress.

Sources: Business Insider, Pragmatic Capitalism
***

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>