How to Make a Quick 20% as Copper Rises from the Dead
Wanna make money on both sides of a trade? Thought so…
We made out like bandits betting against copper in the past. Now we’re going to cash in betting on copper for a short-term rally. That’s right— Dr. Copper’s getting a second wind. And no one’s paying attention.
Can’t say that I blame them. This dog has been beaten to a pulp for years. Like I said, we’ve bet against copper a few times over the past 18 months. It was like stealing candy from a baby.
But something’s different this time. The copper bears are capitulating. A stealth rally is in the works. And it could net you 20% gains in no time…
I told you last month that Dr. Copper lost his degree thanks to pesky technological advances. Semiconductors, my friend Andrew Thrasher explained, had become a much more reliable indicator of economic health. After all, it’s tech— not the industrial sector—that’s fueling growth these days.
Copper’s descent into oblivion is nothing new. It all started back in late November when Dr. Copper started acting loopy, dropping well below $3 for the first time since 2010. That capitulation move was essentially the previous decade’s commodity boom unwinding.
From 2001 to 2011 the price of copper exploded more than 620%, topping out near $4.50. It’s impossible to overstate the enormity of this rally. But that’s ancient history now. The metal plunged below $2.50 earlier this year. Those were five-year lows. Brutal…
Here’s the chart I showed you earlier this year as copper began falling apart at the seams:
Plunges like this one come lightning-fast. For copper the elevator down accelerated after the metal lost the $3 mark. Sagging demand in China and Europe was the final nail—especially when you consider that China was responsible for a whopping 40% of the world’s copper consumption recently.
We highlighted the psychological importance of the $3 level in copper prices many times. And for the past several years copper managed to recover every time it breached $3. Before its November breakdown copper snuck below $3 last March. But it rallied back above the $3 mark by April. No such luck last fall. The good doctor’s medical license was revoked and copper dropped nearly 20% in just three months.
But this is where your opportunity comes into play today…
Look at how copper appears to have bottomed out this month:
Copper dropped below $2.50 in late January on heavy trading volume. But buyers quickly stepped in. Now we’re seeing the beginning stages of a potentially powerful comeback rally.
Now’s the time to bet on a quick copper rally. You could easily net double-digit gains in a matter of weeks if this former loser starts cranking up the heat.
P.S. Rumors of Dr. Copper’s death are premature. If you want to cash in on the biggest profits this market has to offer, sign up for my Rude Awakening e-letter, for FREE, right here. Stop missing out. Click here now to sign up for FREE.