Email of the day on the Friday review of copper and other large movers:
Comment of the Day

December 01 2014

Commentary by Eoin Treacy

Email of the day on the Friday review of copper and other large movers:

Eoin, the steep reactions in these charts appear to offer opportunities, whether buying energy shares or shorting airlines. Your thoughts?

Eoin Treacy's view

“Acceleration is a trending ending but of undetermined duration” has long been the definition of Type-1 trend ending as taught at The Chart Seminar, so yes these extreme moves increase potential for reversions toward the mean and potentially medium-term bottoming and topping activity.

Gold and silver’s activity today supports the view that a low of at least short-term and potentially medium-term significance has been reached. 

Copper still has a lot of work to do before one could conclude a downside failure has occurred.

Crude oil is oversold by any definition and potential for some steadying and potentially a reversion towards the mean has increased. The fall in prices though has resulted in some major cut backs in capital expenditure plans which are likely to have medium-term consequences for related shares. (Also see David’s piece above).

Follow through on Southwest Airlines downside key day reversal today will be required to signal more than temporary supply dominance in this area. 


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