Dr.Copper with a bearish diagnosis for US stocks

22.05.2019 / 08:57

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It is not unknown the correlation between resources (oil, precious metals) and stock movements. When stocks are down, resources follow them, because stocks reflect the state of health of the economy, and resources the demand. In case of a problem it decreases. The opposite is true when we have a boom in the economy and a search for resources, of course, in a market that is not under the influence of geopolitical shocks.

Here the example will not be with oil but with honey. Dr.Copper - its nickname, because it measures the state of the global economy best - has been under intense pressure since the beginning of the war. The correlation between the S&P500 and the S&P500 has been disturbed for some time, but we still get signs of mirror behavior. As we can see, copper at the end of 2018 suggested the latest correction for US indices. Today, at the beginning of 2019, we are seeing this bearish signal again. Dr. Copper is ahead of events, suggesting a new correction or playing a temporary market noise?

Trader Martin Nikolov

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Dr.Copper with a bearish diagnosis for US stocks

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