|JJC (the Copper ETF) in terms of the SP-500 (bottom - green). Generally a rising ratio (JJC outpacing SP) indicates a strong bull market. Again, since early 2011 we have seen deterioration. |
I didn't know if JJC was as bad as tracking actual copper as USO is at tracking crude so I decided to check.
Sure enough, actual copper has outpaced JJC by about 16% since 2009 so my chart is not completely accurate above.
Here is a better one, but it is not that much different:
As a reminder of how poorly USO tracks crude:
You can say well using this I would have missed this last rally. Yes for the overall Dow and Nasdaq, but if you check out the chart of C, you will see it is still down 40% from that point. Others are up significantly. This is one of the reasons I advocate trading; if done well, it allows you to experience the good parts and miss a lot of the bad.
"To combat depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection or production, we want to create further misdirection- a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end."
I don't know what will force our effort to expand credit to end. Extreme inflation?
Fredrich Hayek, 1933