##{"id":57539,"date":"2010-12-09T10:10:37","date_gmt":"2010-12-08T23:10:37","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2010\/12\/09\/copper-a-leading-risk-indicator\/"},"modified":"2010-12-09T10:10:37","modified_gmt":"2010-12-08T23:10:37","slug":"copper-a-leading-risk-indicator","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2010\/12\/09\/copper-a-leading-risk-indicator\/","title":{"rendered":"Copper, A Leading Risk Indicator"},"content":{"rendered":"

\n\tFNArena<\/span> has added another video to its Investors Education section on the website<\/span>. This time ATW's<\/span> Jerry Simmons explains why investors should closely watch what's happening in the copper market, widely regarded as a leading indicator for risk assets together with Chinese equities and AUD<\/span>\/USD<\/span>. Simmons offers a few scenarios from a technical point of view.<\/p>\n

\n\tSummary and Comment on ATW<\/span> Strategic Prep Video 2010-12-06 “HG Comprehensive Analysis”; .wav<\/span> format; 49 min total duration; 56.5 MB<\/p>\n

\n\tSummary<\/strong>
\n\tIn this video, Jerry Simmons, Lead Mentor and Co-Founder of the Advanced Trading Workshop, Inc. (“ATW<\/span>”), New York, emphasises<\/span> the need for daily monitoring of global economic news releases, not just US news releases, points out one of the best sources for such data and moves on to analyse<\/span> the current structure of the copper price (“HG” for “high-grade”) and scenarios to the upside and to the downside of the current market price.<\/p>\n

\n\t– Copper, together with the FXI<\/span> (ETF<\/span> for 25 leading Chinese stocks) and the AUDUSD<\/span> pair, is a leading indicator for the S&P<\/span> and international equity markets(1).<\/p>\n

\n\t– Copper formed a long series of major highs, from 2006 – 2008, between the $4.00 to $4.10 level, which is now Key Resistance.<\/p>\n

\n\t– For the upside scenario (a sustained breakout of the price to the upside) to be favoured<\/span>, we would need either a daily price bar (“BOB” = Break-out Bar”) whose low is above $4.10, or two consecutive closes above $4.10.(2) If this occurs, the first upside target would be the $4.28 – $4.32 price level4<\/span>; the second upside target would be the $4.50 – $4.53 price level.<\/p>\n

\n\t– For the downside scenario (a sustained breakout of the price to the downside) to gain the upper hand, the DPTL<\/span> (Dual Purpose Trend Lines) at 3.87 – 3.97 would have to be taken out to the downside, i.e<\/span>. the price would have to drop significantly below $3.87.(3)<\/p>\n

\n\tComments<\/strong>
\n\t1 Examples: (1) Copper bottomed in late December 08; about 3 months before the low in the S&P500<\/span> which was in early March 09; (2) Another, lesser important low in the copper price occurred on 11 June 2008, a month later, in early July 2008, the S&P500<\/span> bottomed.<\/p>\n

\n\t2 Jerry Simmons holds that it will be difficult for the S&P500<\/span> and other major equities markets around the world to break out to the upside without copper first achieving such a break-out to the upside.<\/p>\n

\n\t3 Should this occur, it would do significant damage to the upside scenario not only of the copper price, but of global equity markets as well.<\/p>\n

\n\t4 Should the copper price break-out to the upside to its first target of $4.28 – $4.32, we can expect the S&P500<\/span> to rally to its first upside target of 1245-1255 soon thereafter, given the proven correlation between the copper price and the S&P500<\/span> and the leading indicator nature of the copper price over the S&P500<\/span> equities index.<\/p>\n

\n\tTo view the ATW<\/span><\/span> Strategic Prep Video (originally from November 29, 2010) titled "HG Comprehensive Analysis" click HERE<\/a> or visit the FNArena<\/span><\/span> Investors Education section of the website<\/span><\/span>.<\/p>\n

\n\tHere's the direct link: http:\/\/www.fnarena.com<\/span>\/index2.cfm<\/span>?type=dsp_minc_video<\/span>&p<\/span>=17<\/a><\/p>\n

\n\tAll views expressed are Jerry Simmons's, not FNArena's<\/span> (see our disclaimer).<\/p>\n

\n\tJerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW<\/span>). ATW<\/span> recently set up shop in Australia through the establishment of ATW<\/span> Australia (since mid-2010).<\/p>\n

\n\tFNArena<\/span> is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.<\/p>\n

\n\tThe above mentioned videos can be accessed via the FNArena<\/span> Investor Education section at http:\/\/www.fnarena.com<\/span>\/index2.cfm<\/span>?type=dsp_minc_education<\/span>)<\/p>\n

\n\tAbout ATW<\/span> Australia<\/strong>
\n\tFounded in June 2010, ATW<\/span> Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena<\/span> is one such partner.<\/p>\n

\n\tTo learn more visit www.advancedtradingworkshop.com.au<\/span>.<\/p>\n

\n\tTechnical limitations<\/strong><\/p>\n

\n\tIf you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we apologise<\/span><\/span><\/span>, but technical limitations are to blame.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"