Are You Listening to "The Doctor"?

Happy New Year and welcome to 2022!

Over the next few posts, I'm going to cover what I consider some of the most important charts to watch in the first quarter of 2022.

I'm going to start with copper or as some call it, Dr. Copper because it's often viewed as a reliable indicator of economic health. Why? Because of its widespread application in most sectors of the economy, like in new homes, factories, electronics as well as power generation and transmission. 

I know. It's not as cool and hip as cryptocurrencies or a Bored Ape Yacht Club NFT but the price action is something that shouldn't be ignored. It looks to me like copper could be ready to make a move.

Right now the price of copper is trading in a range between $4 on the low end and $5 near the upper boundary.

At some point, something has to give. Price compression eventually leads to price expansion and with the recent consolidation near the highs it looks like the bulls are in control.

But, what are the stocks telling us?

If you look at COPX (Copper Miners ETF) it's breaking out and could be ready to make a run at the old highs from last year and with the help of the commodity, maybe the highs not seen since 2011.

In trading and investing, there are no guarantees but I like what I see in the price action in copper and the related stocks so far in 2022.

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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.