Copper on Lows Could be Big Red Flag for Market

January 15, 2015
By Vlad Karpel

The main-stream media has been focused on the impact of plunging oil ($USO) prices. Is this a supply issue or is there really a global slowdown in the works? I cannot answer that with conviction.  Historically, I haven’t used oil as a basis to make solid global economic assessments.

I do look at commodities like Copper ($JJC) as a solid gauge of economic growth. This industrial metal is at levels today that we have not seen since 2010. I would distinguish this move in copper as potentially a sizable red flag, more so than the move in Crude.

I researched one of the largest Copper producers, Freeport-McMoRan Inc.($FCX). The short-term forecast gives us a 5 rating and 100 percent probability of being lower. We also have a long-term forecast of 1 and a 40 percent probability of being below $14 on $FCX.

Check out the Stock Focus List to capture this data. If the industrial metals get real bearish, this signals deeper global economic issues. That spells VOLATILITY!

See you next time at the Corner!

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