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You know, when an economy does start to recover, it’s not widely known at the time. In fact, the news will still be as full of “gloom and doom” as ever even when it starts.

So you won’t know when the economy is turning by listening to the nightly news. So what can you look to?

Well, here is one widely watched economic barometer that institutional investors have used throughout the years. What is it? Copper

Now you may think, “What in the world does the price of copper tell us about the economy?”

Two potential long term breakouts are emerging in the most unlikely spots…the yen carry trade: EUR/JPY and NZD/JPY

Everyone has been used to yen strength this year and everyone has been accustomed to the idea of the “carry trade” selling off for even longer.

So if this breakout occurs in the upcoming days to weeks as I suspect it will, it will catch many traders off guard. There are still a ton of traders “short” on this trade that will be caught on the wrong side of the trade and will have to reverse their positions.

Also, there will be many former “carry traders” that have given up on the concept and will have written it off by now as a strategy. It’s about that time when these new, fresh breakouts occur.

A couple of days a week it seems like there are low momtenum days in the market. Today appears to be one of those days.
If you’re a swing trader or a long term carry trader, then this would not matter.

However, if you are into short term trades, then you need momentum type moves NOW and not days from now. There’s not one major currency pair up or down even 1% today. So to me, that constitutes a lack of momentum for the day unless that suddenly picks up.
For the short term trader, momentum (strong, quick trending moves) are your friend…and a lack of momentum (creeping trends or dull ranges) can be your enemy.