The market has been doggedly following short term economic
factors, particularly the ECRI leading index, weekly unemployment
claims, sensitive materials prices and the 2 yr. Treas. note yield.
At first, I thought strength so far this week might reflect other
positive economic signs such as a large increase in global chip sales
and indications retail store sales were pretty decent in June. Then,
I checked in with "Dr. Copper", one of the better economic
forecasters around, only to find that the copper price has started to
edge up in recent days. Since copper is one of the more important
of the group of industrial commodities, action in this market may
be receiving unusually heavy scrutiny by stock traders. This would
also suggest that the market might still be retaining its narrow
short term focus on near-in fundamentals. Copper.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!