Thursday, February 16, 2017 8:50:35 AM
Off the charts
Cramer went to the charts to get a technical view on copper as it determines the health of the overall economy. "Copper's strength is part of the traditional metrics that define economic growth and it can be a part of the rational justification for what so many believe is an irrational rally," he added. He checked the charts with the help of technician Ed Ponsi.
Copper is at a yearly high and the markets are at all-time highs. Ponsi said that history suggests the economy tends to make powerful moves when both stocks and copper move together. "It is not a crystal ball. However, those who ignore history are doomed not to profit from it, so it would be a mistake to ignore copper's latest move," said Cramer.
The market loves increased demand for copper but the rally in copper seems to be supply related. Workers are on strike in the biggest copper mine in the world and many companies have cut production as well. Ponsi noted that China consumes 50% of the world's copper and when its economy is growing, the price of copper rises too.
Weekly charts from 2008 show that Copper bottomed in 2008 and then tripled by 2011 hitting a peak. China's trade balance shows that their economy is on the rise for the first time in years. Ponsi believes that a copper rally could be good news for the global economy and US stocks in general.
"I am still a bit skeptical because if copper is only rallying because of tighter supply, then that is a lot less significant for economies around the globe," said Cramer. However, copper strength could mean strength for the overall market.
Recent PLM News
- Form 15-12G - Securities registration termination [Section 12(g)] • Edgar (US Regulatory) • 11/17/2023 09:00:18 PM
- Form SC 13D/A - General statement of acquisition of beneficial ownership: [Amend] • Edgar (US Regulatory) • 11/08/2023 06:49:29 PM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 11/07/2023 08:23:49 PM
- Form SC 13E3/A - Going private transaction by certain issuers: [Amend] • Edgar (US Regulatory) • 11/07/2023 08:18:49 PM
- Form 25-NSE - Notification filed by national security exchange to report the removal from listing and registration of matured, redeemed or retired securities • Edgar (US Regulatory) • 11/07/2023 02:17:06 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/07/2023 12:31:46 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/03/2023 07:08:45 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 11/02/2023 11:23:52 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 10/27/2023 11:32:47 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 10/16/2023 12:24:31 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 10/03/2023 01:15:06 AM
- Form SC 13E3/A - Going private transaction by certain issuers: [Amend] • Edgar (US Regulatory) • 10/02/2023 11:59:46 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/28/2023 11:31:51 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM