Copper & the Coronavirus — How Far Will the Market Fall?

Danielle Shay talks about Copper, one of the markets leading indicators. Click the image above to watch the full video.

Watching leading indicators in the market is a great way to get a feel on overall direction. One of those leading indicators is copper, or Dr. Copper. Price fluctuations in copper are reflective of economic growth (or weakness) because copper is a widespread element found throughout a variety of products in various industries and sector groups. It can be found in new homes, construction, electrical components, with particular emphasis on the electrical group. When the price of copper is rising, this is reflective of rising demand for the alloy across sectors of the market but when demand is falling, this can be a leading indicator for economic weakness.

During this segment, I discuss how Dr. Copper has been falling for the last two years, which I view as a reaction to the slowing of the Chinese economy, particularly due to the trade war. When coronavirus news hit, it was almost like the final blow to the Chinese economy, and this coincided with a further hit in copper. On the 31st, I noted that I was looking for an oversold bounce in copper, which has come through. At this point, copper looks like it will fall even further, and with the current economic uncertainties and leading indicators like copper and transports getting hit, it is likely the market will fall even lower.

Want more trading education? Follow me here by signing up for my free newsletter, at, or in my Mastery program which you can find at You can also follow me on Instagram, Twitter @traderdanielle, or on Facebook.

Leave a Comment

Up Next...

NVDA: The Gift that Keeps on Giving

Nvidia shares have experienced a meteoric rise, so all eyes were on its earnings report last week. Investors were not disappointed, as NVDA reported explosive growth plus a highly anticipated stock split. Why Stock Splits are Exciting NVDA’s reported 10:1 split will take place on June 10th, less than two weeks away! This event is … Read more

Read More

SPX 0 DTE: Part II

Hey traders! I posted a video on a neutral SPX 0 DTE strategy on Monday, and I had many questions, so I decided to do a follow-up video with a second example. In this video, I cover several questions, including the width of my iron condors, the length of time, the risk-to-reward, and more. Check … Read more

Read More

Trade Review: Using a Neutral 0 DTE SPX Strategy

  In today’s Trade Review episode, I cover a quick SPX 0 DTE trade from last Friday at market close. In this video review, I cover: Why I decided to make a bet that the market would trade sideways into the close How I analyzed the options chain and technical chart patterns Why I decided … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now