Tuesday, September 17, 2013

Industrial Sector and Copper Relationship Broken

The chart above shows the relationship between copper (JJC) and the industrial sector (XLI).  From the beginning of the latest expansion there was a strong relationship between the two.  However, starting in the spring of 2012 a disconnect occurred; the two are now remarkably unrelated.

I have no idea why this is the case, but I thought it was very interesting.