Tuesday, October 18, 2011

Two Charts That Deeply Concern Me

China is now the engine that drives the world economy.  The first chart is the FXI -- or the ETF for China.  Notice it is near yearly lows and is also in a clear downtrend.  The second chart is copper, which is used in everything.  Hence, demand for the metal is a good indicator of the economy's overall health.  Notice that this chart is also near a yearly low and is also in a clear downtrend.

When the word's growth engine is a downtrend and the primary industrial metal is in a downtrend, you know there's a problem somewhere.