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As we have covered extensively, international equities have been on one of their best runs in years so far in 2025. This brings up questions of how much is left in the tank for such a strong move. On the Asset Class Group Scores page, the All Global and International Diversified group has a score direction of 1.93 which is its highest since September 2020. Historically, we’ve seen the score direction stall out at these levels which is not necessarily a negative sign moving forward. However, it does suggest that the ride international equities have been on may be subject to slowdown over the next few months.

While international equities may cool off in the short-term, the All Global and International Diversified group’s average score has hit its highest level in over 17 years. The last period when the group held around and above a score of 4.0 was from November 2004 until January 2008. Over this period, the iShares MSCI ACWI ex US ETF (ACWX) returned 60.66% while the S&P 500 Index (SPX) gained 21.94%. International equities may need a cooling off period, however the long-term technical readings are the most positive they have been in almost two decades. If the average score for the All Global and International Diversified group remains in strong or acceptable territory, then a pullback should be a welcome sight for investors looking to gain exposure to a strong area of the market.

Yesterday’s featured article went into detail for some best practices for including alternatives into your client’s portfolio. It just so happens that at the same time, some big moves were taking place within an area of the asset class not talked about frequently throughout 2025: Copper. Advancing over 13% for the day, HG/ broke to new highs as it put in one of its strongest days since 1989. The catalyst for the move was tariff based, seeing the possible implementation of a 50% tariff placed onto the industrial metal. The exact date of implantation of the increase in tariff was not mentioned as of 7/8. Pharmaceuticals were also a point of emphasis, but won’t be a focus for today’s report.

Most of you won’t have constant exposure to copper within your portfolio. An even smaller percentage of readers will field direct exposure to physical copper contracts HG/ within client accounts. With that in mind, most of today’s conversation with revolve around recent absolute and relative developments for copper proxy CPER & miners representative COPX. While most of the recent attention has been on precious metals and energy names (the good and the bad…) copper has quietly put together quite a strong 2025 campaign. Before yesterday’s large gain, CPER had advanced nearly 24% through 7/7… bouncing up to 34.22% post tariff announcement. The move, as you may expect, brings the name well into heavily overbought territory on its default chart. While near-term price action will most likely be driven on speculation on tariff implementation, it would also make sense to see some sort of normalization- old resistance at the top of the trading band makes sense for a cool down.

If you have been around Dorsey Wright long enough, you know that absolute improvement is only half the battle. Relative improvement is often the next step in any sound investment analysis process. CPER moved back into a column of X’s against domestic equity benchmark SPXEWI for the first time since May, sitting just one box away from posting a buy signal. While chart consistency hasn’t been particularly additive over the last decade, continued upside action would certainly be of interest as a bit of “confirmation” to yesterday’s near-term move.

It isn’t lost on the analyst team that it isn’t entirely practical to utilize a pure switching strategy between domestic equities and copper. What is perhaps more reasonable is comparing copper to other commodities, in this case leader gold. Gold has been a high flier over the last few years, and while it has consolidated around 2025 highs, it remains a relative leader underneath the hood of commodities. A more defensive minded gold also sits at odds with a more economically useful copper, supporting a more “risk-on/risk-off” tone. The chart below compares CPER to GLD on a 3.25% RS chart. Copper remains on a pair of sell signals (said otherwise, gold maintains long term strength…) but the near-term price action has seen copper move back into X’s for the first time in 2025. While we prioritize the long-term signal, keep an eye on this chart if gold continues to tread water while other areas improve.

For those of you looking for more actionable ideas today, copper miners did see more muted returns following the tariff announcement. COPX maintains a strong 4.97 fund score, having returned to a buy signal against the broad market to close June. Sitting on a string of four consecutive buy signals, the fund reversed off 2025 highs and sits on the cusp of heavily overbought territory at the time of this writing. Consider the pullback a decent entry point, but keep in mind that near-term price action could be headline driven and miners are typically susceptible to rapid swings in either direction.

Each week the analysts at NDW review and comment on all major asset classes in the global markets. Shown below is the summary or snapshot of the primary technical indicators we follow for multiple areas. Should there be changes mid-week we will certainly bring these to your attention via the report.

Remember, these are technical comments only. Just as you must be aware of fundamental data for the stocks we recommend based on technical criteria in the report, so too must you be aware of important data regarding delivery, market moving government releases, and other factors that may influence commodity pricing. We try to limit our technical comments to the most actively traded contracts in advance of delivery, but some contracts trade actively right up to delivery while others taper off well in advance. Be sure you check your dates before trading these contracts. For questions regarding this section or additional coverage of commodities email james.west@nasdaq.com.

Data represented in the table below is through 07/08/2025:

Portfolio View - Commodity Indices

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