It wasn’t Ali who shocked the World knocking Joe Frazier down it wasGeorge Foreman.
In 1973 the undefeated Frazier had beat the unbeatable Muhammad Ali (everyone’s favorite Muslim) to take the title and had defended it twice in 1972 before being knocked out in just 2 rounds byForeman (everyone’s favorite grill salesman). Frazier had 29 consecutive victories up to that point and seemed unstoppable but then, suddenly… unexpectedly… he was stopped. Giving Frazier huge credit he was knocked down 6 times before they stopped the fight but it was a beating nonetheless.
This morning copper has been knocked down and is leading commodities lower after coming off an earlierknockdown at $200 and another at $150 – having started its run way down at $125 back in December. Of course, after a 100% run to almost $250 we can certainly forgive them a 20% pullback to $225 per our 5% ruleand we’re not going to call the fight just yet but Oil is also pulling back off a 100% run while gold has only moved 17.5% over the same time period, already double-topping at $1,007 and $989 in February and May respectively.
As recently as May 26th, we had looked to copper as a bullish sign as they broke out over $200 but oil was only $60 at the time. Since then, both copper and oil have rocketed 25% to the point at which I warned of hyperinflation in a special post last Thursday. Let’s take this move VERY seriously as it took days after I started worrying about copper for the commodity to finally drop and my observation onMay 12th was that investors had finallyrealized that “China buying copper to stack it up in warehouses wasn’t a buying premise.” That gave us a great week last options expirations as we took bearish stances on Agriculture, Oil and Metals right into Monday’s mega-pumpas the Dow then gave up 600 points between that Monday’s post, where I called fora meltdown, and that expiration day Friday when I said: “We are already on vacation, having followed our plan to cash out at the bottom yesterday anticipating some short covering today that would take up the markets.“
That gave us a very happy holiday weekend and we did get our rally on light volume during the next, short week but that took us to 8,800 on June 1st and, since then, we’ve been waiting and waiting and waiting and waiting for the market to…
