Copper had a terrible day yesterday, at least for the long crowd. One of the most important metals for the economy collapsed, putting in the biggest drop in months. Copper has been lagging the Chinese equity bull for months, so if this is an effect of the slightly less bullis Chinese equities, Falling ISM, or other economic factors nobody knows, but liquidation was huge. Copper is trading right at the 200 day average. 

Emerging market FX has mean “read a-crosses” with Copper, and the two move in tandem over time. Note the recent fall in the EM FX space (orange), now accompanied with Copper (white).

With global equity volatilities in full blown implosion mode, the below chart of Emerging Markets volatility, VXEEM index, could potentially be a good “hedge” for both the EM FX space as well as Copper.The case here is looking beyond the obvious.

Source, charts by Bloomberg