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Copper Is Under Pressure

Source: Michael Ballanger 09/03/2024

Michael Ballanger of GGM Advisory Inc. takes a look at the current state of copper and shares one stock he is currently holding.

USD Index futures are up 0.133% this morning with 10-yr. yields flat and 30-yr. (+0.12%) yields slightly lower.

Gold (+0.13%) is up while silver (-1.31%) and copper (-2.64%) are lower.

Oil is down 0.97%. Stocks are headed lower while risk barometer Bitcoin is down 1.34% to $59,666.

Stocks

We have now entered the weakest month of the trading year and in another couple of days, the corporate buyback window slams shut. It is interesting to note that August 5 marked the "carry trade crash" low AND the re-opening of that same window.

From a positioning standpoint, the bigger funds are now back to being fully invested in stocks moving into the last month of the fiscal third quarter. Sentiment, as measured by the CNBC "FEAR-GREED Index" is back to at 63 in direct contrast to the reading at 27 one month ago.

If contrarian investing is to be used as a trading tool, then I should be pleased with my volatility position looking out to the next few weeks.

Copper

Today, copper has opened down sharply which is disturbing but not exactly surprising as it is largely correlated with stocks most of the time (and vice-versa). Just as copper ...