Something Is Wrong With Copper And/Or Global Economy23 September, 2011, 13:56. Posted by Zarathustra
Tags: Copper, Global Economy
As the chaos in the market continues, there seems to be further liquidation on everything. Now, we can see that there is something wrong with copper: it has been falling off the cliff of late.
Copper is a leading indicator to global economic growth (or probably, China’s economic growth rather) as a kind of metal with industrial uses. The recent weakness is signalling something bad about the global economy.
Here’s the chart of copper from finviz. As you can see, it seems to have entered into a free fall.