3 Stock Market Trends To Watch In 2017

The new year kicked off in a rather stable way for markets. Interestingly, some specific commodities are doing quite well, and those stock market segments are outperforming most other segments. The trend in gold has clearly a bearish bias at this point. In this article, we explore 3 cross-market trends which could result in strong moves in specific stock market segments in the coming months.

Interestingly, this writer on Forbes got it right last year as he correctly called for a bullish stock market trend after the collapse of January. The indicator in his piece was the number of stocks at all-time highs, as those stocks are sensitive to sentiment in broad markets.

Although Wikipedia has a focus on technicals when discussing stock market trends, our focus is on intermarket dynamics. That is why below stock market trends are identified from a cross-market perspective as opposed to our sector specific news update 4 Stock Market Sectors Which Could Outperform In The First Months Of 2017.

Stock market trend #1: Copper stocks

The Baltic Dry Index is a leading indicator for commodities. Both in 2008 and in 2016 the Baltic Dry Index collapsed to multi-decade lows. As the index recovered in 2016, it pushed some leading commodities higher as well, crude oil and copper being the most important ones.

The chart below shows the Baltic Dry Index, crude oil and copper. Visibly, copper has a more constructive setup at this point. In other words, with the recovery of the Baltic Dry Index, the copper market is set to profit most of it. Stock market investors should watch copper stocks very closely in 2017 as a potentially very profitable stock market trend.

This is not a new insight to our readers, as InvestingHaven’s research team recently wrote Copper Price At Secular Breakout Point and Copper Price Surging, Close To New Secular Bull Market. It is just that below view on the market provides an additional confirmation of that same viewpoint.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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