Dr. Copper Smacks The Anonymous ECRI Defender ... For Now

Angry defender of ECRI in the curious case of Dr. Copper gets smacked. Thanks to anonymous, I was forced to dig the grave! Still, I should remain reserved, but look for details here or the "Intermarket analysis: profiting from global market relationships" by John J. Murphy, Pages 37 and 38:

The JOC-ECRI Index includes 18 industrial prices grouped into textiles, metals, petroleum products (including crude oil), and miscellaneous products (including plywood). The metals markets include aluminium, copper, lead, tin, zinc, and nickel.

Well, it may be changed now... At least now my assumption is based on historical facts (hopefully)!

This leads me to another round of thoughts ...

Chinese pig farmers "give “the impression that there is strong demand in China,” said Jiang at Shanghai Oriental. “But it is actually those who take a pessimistic view of the economy and are looking to preserve their wealth who are buying.”

This is hardly leading indicator of industrial cycle, and the oil price story is also loosely connected to oil demand in the US. It is no secret that China drives the commodity prices, as the largest consumer in the world ... Further on, China has been mad pressing the accelerator of credit growth so far this year, stockpiling commodities etc. In addition to that, the Chinese renminbi/yuan is pegged to US dollar, and China has been disseminating the weak dollar concern. And one will find quite a correlation between USD and commodity prices...

Does this sound like an industrial growth story for the US?

Paranoid schizophrenia? I am just speculating. Easy riders will save the world ...

Don't underestimate the power of (positive) feedback loops!