Copper and the Emerging Markets (EEM ETF)
Copper is important … it’s still a major player w/ regard to the global economy and is something that should be watched. We also think Copper made a very important wave 5 top … here’s the chart as the top was getting made (I want to provide “real time “charts” so there is no “could of, would of, should of”). It certainly counts a 5 wave move UP being complete.
WHY IS THIS SO IMPORTANT … well, if we do, in fact, have this count right then the corrective move in COPPER HAS A LOT MORE TO GO. Here’s the updated chart and note the “neckline” that most everyone can see. Bottom line is this neckline is a big deal and, particularly to the EEM ETF. (Emerging Markets)
here is the EEM ETF (daily) and NOTE HOW IMPORTANT THE 37-38 LEVEL IS FOR THIS ETF. It’s completed a pattern and we had some good buying occurring at the key level but IT NEEDS TO HOLD.
now, why the diatribe about Copper above? Well, this next chart is Copper overlaid on top of EEM. Note the synchronicity … pretty well lined up.
- IF COPPER has 5 wave top THEN it has more correcting and downside. Potentially substantial …
- IF COPPER and EEM synchronicity to remain THEN EEM pattern that is noted on the DAILY EEM chart will, ultimately, fail.
- IF COPPER and EEM break necklines THEN substantial selling coming in the future for not only COPPER but also the Emerging Markets.
- THERFORE: don’t be LONG EEM.
Make it a great weekend …. B