Futures Market - Copper Highlight #2
Copper market exited on day of highest close of the first half of 1998.
(COMMENT # 318)
UPDATED 19980415
COMMENT 1998-318
1. Copper is up 400 points this morning.
2. This is what we meant when we discussed the rapid MARK UP phase which often occurs when RETEST lows / Elliott Wave "2" waves ALIGN with "Inversion Cycle" monthly / weekly ALIGNMENTS (see COMMENT #s 302, 303, and 312).
3. It's important that you understand the difference between a monthly / weekly "Inversion Cycle" ALIGNMENT occurring at the end of a major trend versus one that occurs at a successful RETEST of an important high / low of a previously established reversal of a major trend turning point.
4. CP provides a classic example of this difference.
5. Now review COMMENT # 312, Point # 6.
6. Can you see how most chartists have just entered / reversed to the long side this morning?
7. Same for the traditional trend following methods.
8. Of what value are such techniques which place one's RISK level so far away from current price?
9. Could this have been the type of technical analysis Judge Bruce Lhevine was referring when he stated that technical analysis was a fraud (see COMMENT #s 95, 255, 276, and 279)?
10. It should be noted that copper this morning is at the upper end of a parallel channel drawn off the 980224 and 980403 lows and the 980415 high and is thus due for a pause.
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