While everyone is transforming into a berry munching, hippie backpacker eating bearshitter, allow me to play the role of Larry Kudlow. I would like to point out that $FCX is breaking out of a crucial consolidation zone ($66 level) on the strongest volume it has seen in two weeks. This has been an excellent leading indicator for the broad market for years now. If we are truly rolling over from here, this should be getting slaughtered on heavy volume, not the other way around.
As the kids would say, “just sayin’.”
My reasoning for leaning toward weakness this morning was that all the stocks that I found in my long setup breakout scan over the weekend (125+) brokeout then faded this morning. I find that the performance of these are a good indication of the health of the market overall (follow through = healthy, fade = weakness).
The 200 day sma needs to hold here for the bulls to stay in control in my opinion
We could pullback to the 20 day and still be ok, but yeah I agree with your general premise.
Short Sqeeze
definitely a factor
I think FCX is a little different from the general market here — FCX, doing what they do, is a commodity play. If you think the yuan is going up and the Chinese will have more money to buy rocks, then FCX should go higher.
Fair point. I am curious to see how it develops myself.
Today was the day after options expiration. Would this affect only the US market? Emerging markets looked good today.
great point! hadn’t thought about that—I am inclined to see this as a shakeout
thnx
thanks for bringing FCX back to attention (ala the critical 65 level for the most recent battle). Now that thats held and the market is in a squirrelly chop for the summer I’m referring back to it and and some other fav indicators in case I might wish to alter my theses. For now, I don’t – so that’s banking quality time w/ the coin. Enjoying your thoughtful posts. Kudlow is 90% atrocious with the other 10% being a sort of a sorry competence that leeches through the slime of his ideology and lens of his “whatever sells” production masters
my pleasure monsieur thnx for reading