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10/21/08

Chart of the Day............

.........is the five year copper chart.

Biiwii's Gary (one of those arch mumbojumbo TA heads) will enjoy seeing me admit that charting pushed me into a wise decision on this. And hey, I admit it; if it weren't for the support breakdown at $3.10/lb a few weeks ago I would have held "the coppers" all the way down.

So here we are today with copper down 5% at $2.03/lb. The dollar's strength continues into the 83.5 range on the USD index and all is suddenly well with the world and Bernanke is our hero and all that jazz, right? WRONG. We need (repeat need) a weaker US dollar for the US real economy to recover (a subject for another post, perhaps). But that's me just getting all old-fashioned and fuddyduddy and worrying about those strange things kind "real economies" and stuff....hardly relevant is it?

Party on Garth.

UPDATE:
Talk of the devil....Gary's put together an interesting mumbojumbochart on the US dollar and you can find it here. FWIW my fundy bones agree with his technical call.