Copper, Oil And Cyclicals All Turning Lower Right On Cue by Bryce Coward, CFA – Gavekal Capital
The impressive rallies of late in the industrial commodities could be nearing their end. Both copper and oil are bumping up against substantial resistance at their own 200-day moving averages that have acted to put a lid on previous rallies. Meanwhile, and not coincidentally, the relative underperformance of counter-cyclicals vs cyclicals since mid-February also appears to have ended (chart 3), with counter-cyclicals leading the market over the last week and a half.
