Thursday, October 31, 2013

JJC Copper ETN Daily Chart Sideways Symmetrical Triangle

The sideways symmetrical triangle patern for copper was highlighted a few days ago and the price action continues to dance across the centerline ready to make a major decision. Keybot the Quant, Keystone's trading algorithm, has the ability to identify which sector or area of the market is most impacting market direction in real-time, and currently identifies JJC 40.20 as the bull-bear line in the sand. JJC popped yesterday to 40.67 giving the bulls, and the broad indexes, the nod higher, however, copper is leaking lower in early trading today. ECB's Nowotny hints at stimulus on the way so the euro is weakening which will send the dollar higher and copper lower. The chart indicators verify the sideways price action. Watch the 50% levels; RSI is a hair above helping bulls, ditto stochastics, but money flow is under 50% helping bears. The MACD line is dead flat at zero. The 20 and 50-day MA's are flat sideways at the critical 40.20-ish area as well. JJC price is balancing on the head of a pin right now and is about to fall in one camp or the other and will take the broad indexes in that direction.

Copper dropping would hint at an extended disinflationary and deflationary scenario moving forward while higher copper and commodities would hint at inflation finally beginning. The vertical side of the blue triangle is about 4 or 5 handles so the breakout move is key. If the bulls can follow through to the upside, the target is 45-46. If JJC collapses lower, the downside target is 35-36. Wall Street analysts poo-poo the idea of deflation although Keystone continues to project a period of disinflation and deflation moving forward. The inflation and hyperinflation is likely a few years away yet. Watch JJC 40.20 to see who wins moving forward. Bulls will be able to keep equities buoyant as long as they maintain JJC above 40.20. Market trouble will occur sub 40.20. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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