×

Dr Copper Forecasting Recession?

If you're watching gold's slide, Fast trader Guy Adami thinks you may be watching the wrong metal.

He's focussed on weakness on copper and the chatter that it could signal a global recession.

"Freeport, the world's largest copper miner, made a 52-week low on Monday, he says. "That's a stock that made a 52-week high at the beginning of the year and save for a few exceptions, has been going down ever since. That's trying to tell you something."

Brian Kelly is also bearish copper. Not only doesn’t he like the chart but he says a strike that traders thought would last about a month was settled quickly - and that relieves supply constraints.

Neither catalysts is bullish for the copper market.


Check out the video for more details on the copper trade as well as the latest Volatility Playbook. Find out why Dan Nathan thinks the Vix could trade north of 40!





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Sep 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Nathan is long Apple (AAPL) through call spreads; Nathan is long Goldman Sachs (GS) through call spreads; Nathan is long Intel (INTC) through put spreads; Nathan is JPMorgan (JPM) through put spreads; Nathan is long Oracle (ORCL) through put spreads; Nathan is Sprint (S); Nathan is long DIA puts; Nathan is XLF puts; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU; Finerman and Finerman’s firm own (AAPL); Finerman owns (BAC) and Finerman’s firm own (BAC) leaps; Finerman owns (JPM) and Finerman’s firm owns (JPM) stock and (JPM) leaps; Finerman’s firm owns (IBM); Finerman owns (GOOG); Finerman owns (ORCL); Finerman’s firm owns (MSFT); Finerman owns IWM; Finerman owns MDY; Finerman owns SPY; Terranova is long VRTS; Terranova is long OXY; Terranova is long HOS; Terranova is long OIH; Terranova is long CVI; Terranova is long AXP; Terranova is long EMC; Terranova is long WFM; Terranova is long AMZN; Terranova is long WFC; Terranova is long AAPL; Terranova is long IBM

For Brian Kelly
Funds managed by Shelter Harbor Capital are long Euro
Funds managed by Shelter Harbor Capital are long MON
Funds managed by Shelter Harbor Capital are long MCP
Funds managed by Shelter Harbor Capital are long TLT
Funds managed by Shelter Harbor Capital are short Aussie dollar
Funds managed by Shelter Harbor Capital are short SLV

For Scott Nations
Nations is long SPY

For Tony Wible
Janney Montgomery Scott is a market maker in the securities of NFLX and GME, and may at any time hold a long or short position in these securities. Janney Montgomery Scott may seek compensation for investment banking services from the subject company (ies) NFLX and GME securities in the next 3 months. The research analyst is compensated based on, in part, Janney Montgomery Scott's profitability, which includes its investment banking revenues.

For Amelia Bourdeau
No disclosures

For Gordon Johnson
No disclosures

For Greg Zuckerman
No disclosures

CNBC.com with wires.