The Coming Copper Correction– Why You Should Be Scared

We all know the story with copper, it’s a product of China’s intervention stoking the commodity cycle in early 1Q16. And also, couple the story with BOJ NIRP and ECB bond buying and you get the global synchronized growth narrative. Well, I did leave out the SNB buying $88 billion worth of US. stocks, but you get the picture where the global synchronized growth narrative came from— it was spawned by a commodity upward cycle. Now today that could be in jeopardy with GSCI Industrial metals stalling on a high timeframe, along with copper hitting a wall of resistance at 3.20-R3. If 3.08 is lost, overhead supply will unlock forcing a downside imbalance in low volume nodes forcing a -11 to -14% correction to around the 2.610 high volume node.