The Freeport Cliff

Major copper (and gold) miner Freeport McMoRan is getting slammed this morning after announcing acquisitions.

Freeport has become a less reliable broad market “tell” for me over the years, but I still find it instructive to see how the stock is acting. As you can see below on the monthly timeframe, once the initial sell-off abates the issue then becomes whether we see a major breakdown from the well-defined support level of $28-$30. I would view a decisive break and hold below $28 as a bearish event obviously for Freeport, but also with implications for the broad market and risk appetite in general.

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