Just last week the price of copper was hitting yearly lows and the bears were suggesting that was a sure fire sign of a new recession around the corner. Yes, copper could be a good indicator, however I do not feel the sell-off this time was foreseeing the future.
In the last two trading sessions the iPath Copper ETN ($JJC) is up nearly 10% from the closing low on Thursday. The ETN is currently trading at $43.66; a close above $44.50 would be a significant breakout.
The PowerShares Base Metals ETF ($DBB), which PFG has owned for years, is up 7.25% since Thursday. The ETF is composed of copper, aluminum, and zinc futures contracts.
The iPath Aluminum ETN symbol is $JJU. It does not trade much and typically follows the movement of copper and the other base metals.
Watch $JJC closely this week to see if a breakout occurs or if the rally is simply an oversold snap back.
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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