Summary:

The Probability Conviction Level is soundly positive for this week. This is an indication that there is a positive probability for potential gains in the global equity markets. It is primarily driven by strong positive Copper price movement as it hits 2-year highs and a rising BDI (Baltic Dry Index).

Copper Futures:

Copper Futures, a forward-looking indicator of global economic activity, is illustrating strong conviction as it opened up heavily to the upside. As of today Copper hit a 2-year high. We think that Copper Futures could be getting ahead of itself so one shouldn’t be surprised to see any pullback. We remain optimistic over the long term when looking at Copper Futures but cautious in the immediate period.

Commodity Futures Online Trading - Bloomberg

Baltic Dry Index:

The Baltic Dry Index has resumed its bullish trends as it increased last week without any resistance. We really don't see any reason why the Baltic Dry Index would slow down at this point considering it still remains at depressed historical prices.

BDIY: BALTIC DRY INDEX Summary - Bloomberg

Probability Conviction Level:

The Probability Conviction Level is a custom indicator. The basic concept is that it provides a probability level and indication for potential positive or negative movement in the coming week global equity markets.

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