Copper just exploded higher in a very impressive move - near the highs. Could this be the beginning of a big run higher? Perhaps ... let's face it, it certainly is feeling that way from an 'emotional' perspective. However, as Mr. Larry P taught me - trade what you see, not what you believe - so why I don't actually trade copper, I do watch it as an important economic barometer. On that note, today was relatively flat but the XLP/NYA actual went down and if equities were topping then we expect the ratio to be doing the opposite. It did not ... imagine a world where Copper blows thru the patterns shown below AND the XLP/NYA breaks to new lows. That would be THE ideal situation. But, for now, I wait ... the ratio is a very powerful tool - with the patterns - so until we get a weekly close below that 15 year support, I'm not going long equities.
Copper might help us foresee the next move of the ratio .. will it smack into the resistance area shown, which is a projection equal in both PRICE AND TIME and start to fall? Or, will it pause for a bit (expected), consolidate and then explode higher ...? Certainly "...
Everyone should be able to see the BIG cliff of support that Disney (DIS) just bounced off and, if correct, just completed a classic EWT "Flat" Correction ...it's supposed to look like an "N."
There is a lot of resistance into 130 so a firm weekly close above 130 is bullish for DIS. If the SELL PATTERN works (we have no idea which ones will and which ones won't) then this price action should break that crucial support lower.
The ETF, PALL (Palladium) looks to have completed a perfect 5 up and 3 down. If correct, we have a set-up to take PALL to new all time highs.
Conservative play is to WAIT for a weekly/monthly close above 114. Take note of the Volume - 3rd largest buying month on record - and the red measured move corrections, all harmonic.
