"Reading the front page of Saturday's FT where there was a headline: "Police fail to prove their mettle as copper thieves cash in on price boom" followed by page 3 article entitled "Coppers and robbers in battle of iron wills" made me think this could be a contrary signal. If thieves are long copper could it be time to go short against them? And following on from this if copper slumps then is Dr. Copper telling us stock markets may follow the same path down?"

Eoin Treacy's view Thank you for this question which is sure to be of interest to other subscribers. Copper has been a central Supply Inelasticity Meets Rising Demand themed market for most of the last decade. I agree that demand for copper is partially dependent on global economic activity. However supply is dependent on mining, taxation, labour, politics, regulation, transport and costs. Heightened interest by the underclass in stealing copper reflects its scrap value and the common perception that prices are high enough to justify the risk involved in such crimes.

Comex Copper has been ranging mostly above $4 since late last year. The last dynamic, posted in August, constituted a large weekly downside key reversal and prices have since fallen back to test the lower side of the 9-month range. A sustained move below $3.80 would complete a Type-3 top while a rally above $4.20, held for more than a few days would be required to question current scope for an additional test of underlying trading.

Copper prices held up impressively as stock market indices declined. While potential for an additional decline in copper prices has increased somewhat, it is unlikely to act as a lead indicator for stock markets.