Copper Spot Prices and Stock Market Volatility
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Authors
Mirafiore, Anthony
Issue Date
2016-04-01
Type
Presentation
Language
en_US
Keywords
Copper , Market prices , Stock market , Market volatility
Alternative Title
Abstract
Have you ever wondered if you could reduce your exposure to risk before it is too late? For decades individuals and scholars have been stumped trying to determine a key indicator for predicting stock market volatility. In this study the daily closing prices for the copper spot market were used to see if it has historically led the S&P 500. By using technical analysis techniques on a 5, 10, and 15 year chart of the copper spot market and the S&P 500 solid conclusions were able to come to light. Sixty six percent of the time over the past 15 years the spot market for copper has led the S&P 500. Key trends were also identified to foretell that the S&P 500 might experience a market correction in the near future while also giving us a price floor for copper prices. These are strong indicators, which if followed, could allow an organization to improve their bottom line and/or give them the potential to make a profit from future market fluctuations.