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Watch Copper Futures and Turn off the TV

|Includes: FCX, Southern Copper Corporation (SCCO), SPY

Every time I turn on the TV some media pundit is pointing to another reason why the sky is falling. The next thing we all think is “wow this sounds like fresh content.” I won't disagree that there aren't some major headwinds to the global recovery but nobody is covering the positive signs coming from Copper Futures. They are screaming for us to buy the market! As well, review a 10-year chart on Copper Futures and one thing is clear Copper forecasted the market crash at the peak and the market bottom in March 2009. Copper is one of the most fundamental forward-looking indicators of economy activity and its time you start using it instead of listening to the media.


Copper Futures have remained strong throughout 2010, increased as a whole, and now are indicating that the market is likely to post gains moving forward. I understand that the market is volatile but if you’re looking at quality companies at bargain prices like I am and wondering whether to buy the answer is “yes.” Remember, the goal is to buy low, wait, and later sell high. If you wait for the market to rally first so you feel more comfortable all you’re really doing is buying high and hoping to sell higher. I can guarantee you this isn’t how the highly touted Buffett got where he is today.

In the hedge fund community and on institutional trading desks around the world watching Copper Futures is Finance/Trading 101. A perfect example of this is Goldman Sachs trading results for 2010 so far. I can pretty much guarantee you that anyone who works on a Goldman Sachs trading desk doesn’t listen to the media pundits when deciding to make a trade. Instead, they’ll look at Copper Futures first and tune out the TV pundits period.

The take away point here is to turn off the TV, stop listening to the daily media, and start looking at Copper Futures. Everyone may say the domestic and global economy is doing horrible but guaranteed someone is getting richer and it isn’t by listening to the media pundits. The people getting richer are focused on forward looking indicators like Copper. It’s time to transform from a sheep and turn into a lion!

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