Not An Easy Task... August 30th, 2019 by John Gross
We’ve been trying to make some sense of it all, but with each passing day, it becomes more and more difficult. And no matter where one looks around the world, it seems as though the wheels are coming off the wagon.
- The Brexit situation is becoming increasingly more desperate
- Hong Kong protests are becoming more violent
- The US / China trade war is getting worse
- Argentina looks to restructure / delay $100 billion of debt
- Interest rate inversions are spreading
- The dollar is rising to new highs
- Precious metals ignore the dollar as they also rise to new highs
Against this backdrop, most major equity markets rose last week, oblivious to world events, with the S&P 500 in particular up nearly 3%, and looking like it wants to test overhead resistance, not far from it’s high.
On the nonferrous front, with the exception of nickel rising to yet another new high, the rest of the complex looks weak at best.
As for copper specifically, a brief glance at the weekly bar chart signals caution, as the price fell to a new low, and closed below a key structural support line again.
This poses a serious threat to the ‘higher highs, higher lows’ pattern that has been in place since 2016, and warrants careful attention to price protection.
As they say – No Rest For The Weary.
View Charts (PDF)