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For almost three years, Copper lows have a high correlation with NYSE Composite lows. See line (1) above in the chart below. Since 20120, when Copper hits a low, so has the NYSE.
Now Copper is back at this support line. If history is a good guide, Copper needs to hold again at support to keep the NYSE from falling any lower!
So many people are focused on the Fiscal Cliff, but what Copper does in the near term is probably more important than all the "cliff" hype. So for the time being, keep your eye on Copper.
From a portfolio construction, what Copper does from here could be huge.
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