Howd'ya Like That, Boys? A Copper!

As a follow-up to this June 24th piece, copper stocks continue to improve to virtually no fanfare. Freeport McMoran is the most (relatively) visible name, trading under ticker FCX. But Southern Copper, below on the daily chart, is another domestic copper play improving steadily.

As you can see, SCCO is breaking out today alongside FCX and Hudbay (HBM). Also keep an eye on ERO.

The larger point, however, as I wrote back in late-June, is that a resurgence in copper stocks would be a sign of sticky inflation. Although a rate cut late this month seems highly likely now, the long end of the curve in many developed nations is seeing rates shoot higher, with rates on the long end in here America volatile yet sticky. 

Simply put, the move in gold is neither an outlier nor an isolated event. Instead, with copper getting involved it signals that politicians and central bankers inside the Beltway had better understand they cannot have their cake and eat it, too.