With the plethora of headlines I am seeing about slowing global growth, it is very easy to forget that marquee copper miner Freeport McMoRan has been downtrending since January 2011 when I made this video calling out the rare Dark Cloud Clover candlestick pattern. In other words, the persistent weakness in steel, coals, and the likes of Freeport over the past several quarters or years has likely foreseen and priced in the slowing global growth being espoused by the financial media now.
For stock traders, being able to tune out that noise is paramount when you consider the updated Freeport daily chart below. Note the high buy volume breakout from its recent trading range. Over the past two weeks, we have seen a lighter volume pullback to the smoothing-out 200 day moving average. Today, the stock is threatening a huge reversal candle.
When you factor in how quickly sentiment turned negative into this pullback, stocks like Freeport look ripe to continue their recent bullish progress in the face of dramatic financial media reports.
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The CNBC fear machine