A good chart to watch here might be the copper company Freeport Mcmoran (FCX).
It still might break out of a pennant to resume its climb but the stock looks heavy here and a trade to $34 would leave it with a lot of room to fall.
Jan 13, 2005
Commodity Question
Most commodities showed strenght yesterday on the back of USD weakness. The problem I see is that interest rates went the wrong way. A new leg higher in commodity prices is about the last thing the Fed wants to see in here. Fed officials already seem pretty skittish about the amount of money sloshing around and are very focused on the amount of liquidity that is being generated by capital markets at current interest rates. Seeing that liquidity move to commodities would only add to their concerns.
A good chart to watch here might be the copper company Freeport Mcmoran (FCX).
Click on the chart to see a larger image!!
It still might break out of a pennant to resume its climb but the stock looks heavy here and a trade to $34 would leave it with a lot of room to fall.
A good chart to watch here might be the copper company Freeport Mcmoran (FCX).
It still might break out of a pennant to resume its climb but the stock looks heavy here and a trade to $34 would leave it with a lot of room to fall.
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