NEW YORK (TheStreet) -- Copper futures are up more than 10% in the last week and the rally was more aggressive in China, BloombergTV's Alix Steel reported on Monday morning's "Bloomberg Daybreak: Americas." She was joined by Bulls Eye Option's Chief Market Strategist Alan Knuckman, who explained the copper rally, an oil selloff and a stronger dollar.
"Well the dollar's strength obviously was pinning down the crude market, pressing it down to the lowest levels it's been since August, we'll see if it can hold $40," Knuckman said. "But copper is its own animal, I think its days are done as a macro barometer of the economy."
The economy wasn't very strong back in 2011 when copper prices were at $4.60, Knuckman noted, and the economy wasn't very weak back in July 2015 when prices slipped below $2.
"I think you're seeing a technical recovery in copper, it traded sideways for over a year, between $2 and $2.25; now it's at $2.50," Knuckman said. "The next target's $3, which is the halfway point of this fall we've seen the last two years."
Knuckman noted that he finds it "interesting" that copper is doing this against the "extreme strength in the dollar," prompting Steel to ask if the rally is sustainable.
"Well, if you look at Freeport McMoRan (FCX) , that stock has gone up 40% in the last month and it's up 105% in the last year, so I think there's some underlying fundamentals that are driving copper," he responded.