Intermarket analysis points to reemergence of China Frankenstein – Market Sniper

Francis Hunt from Market Sniper, via the intermarket analysis of industrial metals and commodity dollars, makes us believe we may be at the cusp of another round of China led instability in the financial markets.

Hunt details the bearish outlook on copper and the Australian dollar. Both are considered as a proxy for China’s economic health and the bearish outlook means we could be in for another major negative news out of China.

On technical charts, both Aussie and Copper look weak. Hunt says, “there are frequent bouts of correction and this is because economic issues in China every now and then are put on ice for a while before they make a comeback, leading to a sell-off in industrial commodities and commodity dollars.