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Contributors According to Dr. Copper, Things Are Getting Better
How You Could Make 150% Gains as Silver Soars to $75

Right now silver prices are giving investors a thrill ride, but it’s not the time to buy. Find out why in this free report.

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As you know, the market views copper as the metal with a PhD in economics because it tends to be a good indicator of global economic health. When global economy is growing at a healthy pace, copper tends to rise. When it’s not, copper tends to fall.

Copper has just broken a consolidation pattern to the upside. Check out the daily chart below. It shows copper broke to the upside of a consolidation pattern known was triangle. This is good news for commodity and commodity currencies. It’s a sign we’re in a “risk on” environment.

The real test for copper will come at the 3.88 level, where the 200 day moving average is now trading. Right now copper is at 3.72. I suspect copper will fail to break above that level, as investors realize the recession in Europe will be worse than expected, and it will end up affecting the global economy.

Besides that, copper has been following stocks higher, as investor sentiment improves. But investors are extremelly bulish right now, which is another reason to be careful. With the S&P 500 testing the key level around 1,300-1310, we could see a pullback in stocks and copper in the short-term.

But I have to admit…if the S&P 500 closes above 1,305 at the end of this week, I will have to rethink my overall bearish view. So far, I’m playing this improved market sentiment by buying the Mexican peso, which has been working quite well. My Exotic FX subscribers are up by over 2,000 pips on that trade.

If this good market sentiment persists, with copper and stocks breaking higher, commodity currencies should perform really well.

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