October 26, 2011
Respect Copper
I am bullish on copper. After its September demise it touched $3, it just retested that low the other day and now it looks like it wants to fill its gap and head back to $4. Despite all the technical bullishness in copper right now, I feel like speculating on a potential source of future demand. A recent study funded by the U.S. Department of Defense demonstrated that copper could reduce bacteria in intensive care rooms by 97%. Hopefully that will convince all the hospitals in the world to line their walls, ceilings and floors with copper.
For other reasons I have been buying FCX, the mammoth gold & copper miner. My first entry was around $34 a couple weeks ago and I bought more today. I do not intend on taking profits until around $41-$42. If I get stopped out protecting profits it will be below $38 on significant volume.
I also initiated a position in SLV. Seasonally silver has done well in November and technically it looks bullish. I would like to see the gap fill from September. Stop-loss is right below $32.
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Talk to the Nymph. FCX and SLV is bury you deep. Welcome to the New Peanut Gallery.
Lord. FCX and SLV “will” bury you deep. I should be banned just for that error.
why?
Mr. Good. Ask the Nymph. She knows copper better than any here. Not my game.
Ok, I will wait for her input.
Knowing copper, like she “knows” the wrong bias all the way through the bull run? Has Nymph ever proven she can get trades correct? I ask that not to point a finger at her, but to justify why I should take her suggestions or why the blog author should consider.
I am a newbie, and I have no idea who this lady is, I just want to know why I will lose money in FCX and SLV.
Did you end up taking profits?
Yes I ended up taking profits and leaving others holding the bag. By Friday I was out of both FCX and SLV. I am however still bullish on both, and will likely re-enter at some point this week when the correction has run its course. Below $40 FCX looks attractive to me.