The ultimate leveraged bet on China is copper. The most prolific copper company with lots of upside leverage is FCX. Ergo and henceforth, the best way to play a resurgence in China is through FCX.
Last night the Shanghai traded higher, in a very government controlled sort of way–after being rejected by the MSCI for inclusion into its benchmark.
Today, the price of copper is whipsawing higher, which in turn is forcibly crushing the skulls of all those short FCX.
I can’t endorse a long term position in FCX, especially with the outlook for China so grim. However, for a trade, it might run for a few days, maybe more. This whole BREXIT scare mongering has ‘trap’ written all over it for shorts. Do not think for a second that central banks aren’t plotting and scheming, scheming and plotting, to cause another frenzied move to the upside.
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