Global stock markets steadied Wednesday despite disappointing factory data out of China. Recent turmoil in equities across the globe has been at the center of attention for many investors, and according to one trader, bouts of volatility will continue to plague the markets, at least for the next couple of months.
"The major reason the Fed didn't see it as time to raise rates is this [global uncertainty]," Todd Gordon said Tuesday on CNBC's "Trading Nation." "I think you have to be short here." And Gordon is setting his sights on one beaten group of stocks.
Looking at a chart of the EEM, the ETF that tracks emerging markets, Todd Gordon noted the tight correlation to a commodity that is often viewed as a leading indicator for the global economy: copper. "You can see these two are very well interconnected over the past year," said the CNBC contributor and founder of TradingAnalysis.com. When copper prices fall, traders see it as a warning. "I think that's indicative of underlying weakness … specifically in the emerging markets."