Ain’t a right time to prove Intermarket Analysis true?? Above chart witnessed a relationship between Copper and
Shangai Stock Exchange. Chinese stock market have doubled in last one year while on the other side Copper the
red metal is making lower lows.
As seen from the history, since 2004 Shagai Market is considered as the leading indicator which means the move
that we have witnessed in a Chinese Market ( Because of the 3 straight rate cuts) yet to be witness in Copper. So its
better to accumulate Copper on dips.
Below we have added Correlation between Copper and Chinese Market, as seen since 2007 it remained mostly in a
positive region till late 2014 but currently its showing a divergence. Interestingly, this divergence remained for
maximum 7 months which is over in current scenario.
Till December 2015, we assume Copper may give 11-12% (conservative ) upside return.