JJC Copper: Balance Volume Displaying Higher Highs Relative To Price
Eric De Groot | Jan 16, 2017 11:31PM ET
Those that view the message of the market on a daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the bagholders of trend transitions.
Chart
Copper's focused bull opportunity has produced a 54% annualized return for the bulls since the second week of November (see JJC Matrix). The opp recorded an impressive 1305% return in the fourth week of November. Disciplined bulls that withdrew their initial investments in the fourth week of November are letting their profits run while watching TIME (BuST) and trend energy (DI).
Smart money, a small minority listening to the message of the market, recognized the decay of TIME as BuST rises above 0 and approaches 2. BuST = -0.4 defines a trend nearing its cycle mid point. Ongoing concentrated distribution, DI readings greater than -60%, advises increased risk aversion for the bulls. Increased risk aversion could mean tighter stops or faster than normal profit taking on the profits - other people's money.
JJC Matrix
A weekly close above the July 2015 gap from 30.40 to 30.79 supports the up impulse, while a close below the November gap from 25.89 to26.15 could reverse it. A reversal favor testing of lower support.
On balance volume, a crude measure of trend energy, has been displaying higher highs relative to price since July. Positive divergences are fractal. A positive divergence on the weekly chart in REV(E), a better measure of trend energy, reveals the power behind the accumulation in copper (chart 3). Details of long-term accumulation and distribution that includes REV(E) analysis is normally reserved for subscribers.
Chart 3
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.