who to believe: Cu prices or China stimulus Copper prices and the world economy:
When doctors get sick; it ain't pretty. According to technical analyst Donald Dony of the Technical Speculator, copper, which
is commonly referred to as a bellwether indicator on the broader economy, peaked in early 2011 and it has dropped steadily over
the past year. The Dow Jones World Stock Index is closely following the trend of the red metal. Global markets have also
crested in the first half of 2011. Copper prices are forming a multi-year reversal pattern. This Head-and-Shoulders formation
suggests that the metal will move below $3.25 in Q3 and eventually reach a downside target of $2.25. The Technical Speculator
(www.technicalspeculator.com) is a pay monthly subscription newsletter, penned by Dony, who for the most part has called the
market spot on over the last several of years of us reading his work. Dony goes on to note, that copper prices still need to
decline below $3.25 before the reversal pattern is complete. Nevertheless, Dony believes the probability of lower numbers over
the summer is high. Given that metal prices have already dropped over a dollar in the last year, this reflection on the world
economy implies slower growth in the months ahead.