You know that FCX is always on my list of scans as a broad market tell, and what we have seen recently is that Freeport topped out well before (weeks) the senior indices did. At issue now is whether Freeport has bottomed, even if the S&P 500 has not. If that is the case, then it increases the probability that another move lower in the broad market could easily pose as an excellent buying opportunity for longer-term swing trades. Note how I also applied this first in, first out analysis to the solars in this piece.
On the daily chart of FCX below, we are simply looking to see if this latest breakout holds. The recent pullback has settled into an orderly falling wedge pattern, which is usually bullish within the context of an overarching uptrend.
In sum, Freeport may have bottomed, which does not by any stretch means that the S&P has. However, it is a sign to look to be much more of a buyer than a seller in the broad market if we see another fresh leg lower in the senior indices. After all, that is the benefit of having a “tell” that leads the rest of the market, sometimes by several weeks or even months.
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Great tune. Great spot with FCX to watch, thanks for highlighting it. I worry that the current mess may not resolve soon and we will be into the next earnings season! Remember, two weeks ago I said this would settle out in a week so maybe this is a contrarian play.