Doc Copper Helping Materials ETF’s Breakout Again
Many are of the opinion that what Doc Copper does, can send an important price message about the strength or of lack of in the overall economy. Doc Copper is important to keep a close eye and how Basic Materials stocks are performing can be important to keep aware of.
Below looks at Basic Materials ETF (XLB) over the past few years
(Click on image to enlarge)
Ascending triangles are rewarding patterns to find in bulls markets, as this pattern breaks to the upside two-thirds of the time. This pattern also helps with risk management, as it helps one apply stops, should the pattern fail to break out, which it does one-third of the time.
Below looks at a different Basic Materials ETF (IYM)–
(Click on image to enlarge)
Strenght in Doc Copper, XLB and IYM often times is a good sign for the macro economy. If both of these would continue higher, it could send a concerning message to bond hold holders. The global growth story wants/needs to see both of these continuing to head higher.
Sign up for Chris's Kimble Charting Solutions' email alerts--click here.