Copper And Semiconductors Go Their Seperate Ways

The chart that caught my attention this week was the comparison between copper prices and semiconductors. Semiconductors have been on a tear of late, with the weekly chart showing two weeks of solid gains delivering a breakout, and bullish net technicals.

However, when you factor in copper prices, it's looking a little more worrying. Copper prices are coming off a crash, and its subsequent bounce has the look of a relief bounce rather than the start of something more sustainable. If this relief rally cracks it will be a warning semiconductors are heading towards a period of lower demand and it won't be long before semiconductor prices are following those of copper.

Another weekly chart to watch is the S&P. The current breakout from early 2025 highs as been following the former support line - now resistance. Technicals are net bullish, and there is an indication that last week's finish is an attempt to push past this resistance. Let's see how this plays out.

Bitcoin had a quiet week, but more importantly, it didn't give up any of the gains it managed last week after its successful test of support.

Just for the record, the Nasdaq has been moving between its rising channel. No great cause for concern here and a "hold" is the play if long.

Finally, the Russell 2000 ($IWM) managed a breakout on its weekly chart. If semiconductors, and by association - tech and bitcoin - take a turn lower, then look to Small Caps to benefit.

I'll be away for this week, so I will leave this post up until I get back.

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Investments are held in a pension fund on a buy-and-hold strategy.

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