Copper: Market barometer...Monthly trend signal active

Copper has once again fired an uptrend signal, similar to what happened during November 2016 and July 2017. If we track the relationship between copper and EEM, SPY, PBR and USOIL, we can see that every time copper breaks out into a trend, there is a bottom in in emerging markets and oil, and SPY receives a boost if bullish, or, could form a turning point as well. Every time Copper has hit one of the targets or time targets, we had a correction in other markets shortly after.
In this regard, it acts as a very effective barometer for growth and broad market health.

I'm rotating towards EMs after having sold my hefty SPY position yesterday at the open. I'm bullish on EEM, PBR, USOIL, and others (like Argentina), the valuations are attractive and spreads vs developed markets offer a great arbitrage opportunity as well. Avid pair traders might be able to short select US equities and long EMs against, or play the spread between copper and oil that currently is an attractive proposition as well. The monthly rally in oil has at least 2-3 more months according to the signals from 'Time @ Mode' analysis that I could find, and upside to a maximum of roughly $89.

Best of luck,

Ivan Labrie.