When Dr. Copper is sick, be careful what may be coming up next as it is a leading indicator and the overall impact may take some time to be felt. I certainly don't believe it is fatal or even life-threatening, but I do feel it is not a trivial event that should be ignored!! When I see people are euphorically chasing stocks again after being panicky to death just a couple of weeks ago, I must say those FOMOs will be killed again, probably soon!
This was the blog I posted on Feb 16, entitled "This Doctor is having a heart attack". Looking back, this was a perfect early warning from Dr. Copper, telling people to be careful about the market. I know not many people at that time would take this warning seriously, SADLY!
As proof of its leading status, notice in the chart below that it topped on January 16. The S&P 500 didn't top until February 19. Copper then bottomed a few days before the S&P 500 on March 19 (March 23 for stocks).
After a few weeks nice bounce back again led by Dr. Copper, it may be again leading its way down, at least seemingly so. Check the charts again above. It seems the stock market is closely following the footprints of Dr. Copper, showing low highs and breaking down from the bearish rising wedge with a descending volume. It is too early to call the top of this bouncing phase but I bet it is very close to it, if not yet there.
BE CAREFUL!!
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