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Is Dr Copper's Bounce Diagnosing Economic Health?

Chatter in the commodities pits on Wednesday was all about the bounce in copper and whether it was a sign that the market had bottomed out.

The red metal is sometimes called Dr. Copper because the price action is often predictive of market sentiment and broader market moves.

And on Wednesday, bulls were pointing to the positive price action as a sign that copper, and by proxy the broad market, had made a bottom.

However, strategic investor Dennis Gartman says not so fast. “The bounce in copper is just that – a bounce from oversold levels,” he says.

"Usually bottoms are not formed in a pattern of a 'V' - where you simply slide into oblivion and bounce violently higher. Usually you get a bounce, then the market goes back and tests its lows again and again.
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Even if you do think a bottom has formed Gartman says don’t jump in. “It takes several days or a week for a bottom to form – be careful.”

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long WMB; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HYG; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long XNDK; Joe Terranova is short JUNE MINI S&P FUTURES; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Stephanie Link is long JPM; Stephanie Link is long DD

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