Chart of the Day - Monday, July 13th, 2020

Today’s Chart of the Day was shared on Twitter by Strategas Research (@StrategasRP). Copper has been gaining momentum lately and is currently working on a six-day winning streak. Strategas points out that Copper is up nearly 30% over the past three months, which exceeds the 95th percentile of all historical observations. While this is undoubtedly overbought in the near-term, Strategas adds that momentum surges like this are often associated with major lows. Strength in Copper bodes particularly well for Emerging Market stocks, as the two are highly correlated. In a comment to The Chart Report, Todd Sohn of Strategas told us, "The implications for Emerging Markets are bullish. You've seen an above-average forward performance from Emerging Markets when Copper gives off this signal."