Every investor is susceptible to tunnel vision. It’s one of the biggest dangers of a pure technicals trading approach. You can miss the details or other things sneaking up. This is why most research tools provide industry comparisons on fundamentals and other metrics. Because only in context, can certain things make sense.
Metals are no different. We can’t look at a single metal in a vacuum and expect the revelations of the universe to enlighten our understanding. We have to take a broader view. Unfortunately, that can present a few challenges. But, the effort is worthwhile.
For the last several weeks, I’ve been diving into an analysis of various markets. There are some odd movements lately. Some are easily explained (reddit I’m looking at you). Some are implied such as how Wall Street reacts to Powell talking. Some just need to be teased out and really explored. As part of that, I’ve been focusing in, from a metals perspective on the silver-copper relationship.
Silver v. Copper
Most of us tend not to think of copper in the same vein as silver. One is a precious metal while the other is industrial. One we hide in the walls of our house so our less-than-reputable relatives don’t abscond with it when they are over for holiday dinner. The other is put in our walls by contractors so we can get…
