Gold And Copper [More Thoughts on FCX]

Gold SeasonalityIn my post Have A Plan For This Correction I revealed a chart of FCX which could [or could not] be a rising wedge breaking to the downside.  In such a trade I like to compare the chart with

  • The overall market direction; is it climbing higher or selling off?Copper Seaonality
  • What about the USD?  Stronger dollar would put pressure on commodities
  • Seasonal demand for the commodity; in this case gold and copper
  • Check the *fear* gauge.   VIX

FCX 10.02.09

These factors can obviously equal your trade spitting into the wind as it it’s June and demand is low but the market is selling off and the VIX is on the rise, gold could skyrocket merely from the fear factor alone so pattern may not be enough.  Check the chart, check those factors and while I’m not advocating shorting FCX, you could select a weakling in the same sector and have similar if not better results.  Good luck

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s