Copper is not pointing to doom and gloom

The price of copper has tended to indicate the strength of the economy, with all the doom and gloom in the news of late one would expect that the price of copper would be significanlty lower. That is not the case, while copper has been in a trading range for 2011, it has not broken down but rather appears to have consolidated. When consolidation phases are resolved the tendancy is to resume the previous trend, which was up. The short term moving average is still well above the longer term, a bullish sign (the cross taking place in 2010). Perhaps signs are pointing to a stronger market in the fall than most reports are indicating.

Canadian Dollar

The price of oil has been dropping since the spring, previously the Canadian dollar has moved with the price of oil, and was seen largely as a Petro-dollar. However, the Canadian dollar has held up relatively well since the spring. Be wary of the weekly double top formation in the Canadian dollar and the recent lower low of the trend. This may be a sign that the Canadian dollar will move down with lower oil prices now that the most recent mini-financial political crisis in the US has been resolved.