Doc Copper Helping Materials ETF’s Breakout Again

Many are of the opinion that what Doc Copper does, can send an important price message about the strength or of lack of in the overall economy. Doc Copper is important to keep a close eye and how Basic Materials stocks are performing can be important to keep aware of.

Below looks at Basic Materials ETF (XLB) over the past few years

Ascending triangles are rewarding patterns to find in bulls markets, as this pattern breaks to the upside two-thirds of the time. This pattern also helps with risk management, as it helps one apply stops, should the pattern fail to break out, which it does one-third of the time.

Below looks at a different Basic Materials ETF (IYM)

Strenght in Doc Copper, XLB and IYM often times is a good sign for the macro economy. If both of these would continue higher, it could send a concerning message to bond hold holders. The global growth story wants/needs to see both of these continuing to head higher. 

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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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