A quick look at copper futures can tell us a lot about global demand. Copper is often mentioned as Dr. Copper (Phd) for its forecasting abilities on the economic front. Copper is in a small trading range and pretty close to 52 week highs. Copper is not signaling any weakness in the global economy, at least yet.

If we take a look at equities, commodities and risk indicators we can summarize the current market environment as follows:

1) Uncertainty is extremely high in the macro environment: some volatility in commodities, sideways action in copper, sideways action in oil and mixed economic data in recent weeks. 

2) A medium term trading range in equities is probably here to stay for a few more weeks: the S&P 500 Index as been trading between 1020 and 1125 since mid May. That is a 4 month trading range. People are getting very scared at the bottom of the range and getting overly optimistic on the top of the range. This price action is frustrating a lot of investors. 

3) Traders are cautiously positioned following a huge two week rally as VIX is finding support despite the recent rally in stocks.

4) The global economy is not collapsing just yet (copper is holding nicely, global ISM indexes showing strength).

So how can we trade in this environment? You can sit on your hands, or sell strength and buy weakness if you have the stomach to do it. A trading range is an easy trading environment if you apply trading range tactics. A breakout will be evident if it occurs. Volatility will explode higher.