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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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Katchum's Macro-economic blog
  • Copper Turns To Contango, China PMI Drops: S&P Poised To Go Down Near Term 0 comments
    Jun 22, 2012 3:39 PM | about stocks: COPX

    In a previous article I pointed out how copper contango/backwardation correlates with the copper price. Since June 11th 2012, copper went back into contango which isn't boding well for copper prices (Chart 1). The China PMI is also going down lately, which means demand for commodities from China will be sluggish.

    As copper correlates with the S&P, I would imagine that stock markets will go down too in the future. So investors should act accordingly and sell equities at this moment.

    Chart 1: Copper Contango Curve
    Stocks: COPX
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