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Commodities Are Frontrunning The Inflationary Shock Of 2018

Published 01/07/2018, 02:10 AM
Updated 07/09/2023, 06:31 AM

I keep reading articles claiming that inflation is nowhere to be found.

If that is true, explain the following four charts.

Copper has broken out of a 10-year downtrend.

Copper Chart

This chart suggests that Copper will be retesting its 2011 highs.

Another inflationary industrial metal (steel) is posting a similar pattern.

SLX Chart

There is literally NOTHING bearish in that chart. The bear market in steel from 2010 onwards is over.

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Coal, another inflationary asset, has broken out of a massive falling wedge pattern. It is now about to smash through critical resistance.

KOL

We see a similar pattern in Uranium (another inflation play).

URA Chart

Just one of the above charts would be a big wake up call…but taken together, they are SCREAMING “INFLATION!!!!!!”

Latest comments

Copper mostly went up because increased EV car production need copper, not because of inflation. Inflation is still very muted, not much of a factor.
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