My once-reliable Freeport-McMoRan broad market “tell” has been running a few misdirection plays at me of late. While the broad market has been printing fresh 52 week highs on a daily basis, Freeport has been churning below its 20 and 50 day moving averages, with a close below the 100 day moving average to finish out last week to boot. Beyond that, the large cap copper and gold miner appears to be nearing the apex of a descending triangle, which often resolves lower. Thus, I am inclined to believe that this week will resolve this glaring divergence, one way or the other.
You may recall a few weeks ago that the transportation stocks were diverging from the broad market as well, only to quickly recover and help to propel the S&P even higher. Just as with the trannies, Freeport has been an historically sound broad market leading indicator. Accordingly, I do not expect the divergences to remain in place for much longer.
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Before M. Gint and M.LeFly castigate you severely, I believe you may have meant to say nadir as opposed to apex of said geometric polygon.
On another front, connected through Houston yesterday from Costa Rica and you couldn’t get near the Jamba Juice vendor = 15 minute queue at least.
Tried to make a side trip Columbia, but some despicable flesh devouring insect and/or arachnid took care of that idea Re: GTE; CME; etc
What are you talking about?
FCX approaching the bottom (nadir) of descending triangle as opposed to apex (top) ???????????
The rest is just rambling jet lag.
CnW’s observation here is spot on from a technical standpoint. Doesn’t guarantee the market is going to roll over but those are two classic chart patterns. From a probability standpoint it would be foolish to get aggressive long the broad market here. Urinal shadows and The Bernank can only keep the ball in the air for so long. My SDS hedge is going to feel good tomorrow. Probably only till lunch.
muktukchuck – where in CR did you go?
South Pacific = near Golfito
i know golfito… my ex owns land in pavones 🙂
i live in central pacific, jaco/hermosa
Got a buddy up there who owns property. Thinking of buying something = maybe Zancudo but for the freaking no-see-ems and mosquitoes during certain moon phases.
Fished in Panama and CR = fair to good on billfish, very good on tuna.
Love that Jaco area too.
Stopped out of COT (+6%). OIL is very green today. Go Arabs!!!