China stocks and Copper are highly correlated
Technician John Murphy has pointed to a 92% correlation between the Shanghai Stock Exchange (SSE) composite index and the Copper futures price.
This chart shows the huge bullish move in recent days and weeks in both the SSE A shares and CU price.
https://www.investopedia.com/terms/a/a-shares.asp#
Correlation is an important concept in portfolio management
https://www.investopedia.com/articles/financial-advisors/022516/4-reasons-why-market-correlation-matters.asp
I have no particular view on the China stock market at this point; however, Copper stocks are my biggest portfolio weighting. Yesterday, while the SSE enjoyed its biggest rise in 5 years, Freeport-McMoRan (FCX) was the biggest gainer by far (+10.87%) in the S&P 500 and in the Cara 100 stocks. That was almost double the gain of yesterday’s #2 Cara 100 winner, Amazon (AMZN +5.77%).
https://tvc-invdn-com.akamaized.net/data/tvc_de90e73c1a880b2275ca3de0f7a77280.png