Copper futures look like they are about initiate some price action that could be the most significant since mid 2006. Copper futures are approaching a key long term resistance range near the 4.000 area. This range represents the top trading range level of an almost 5 year trading range.
If copper futures manage to break out north above 4.0000 by next year then it would transfer 4.0000 to support and would be quite a bullish sign not only for copper futures but perhaps the economy as well.
Many other commodities are showing bullish signs as well apart from the typical gold and silver strength we have been seeing as of late.
The traditional government measures of inflation do not seem to be reflecting this potential world wide boom in commodity prices. Perhaps we need to see copper over 4.0000 and gold into the 1800 range before we start to see tangible signs of inflation.
The inflation rate chart seems to be showing that the inflation rate is doing a massive A B C up move that could put inflation at a 5% annual rate maybe into late 2011 ?