Copper Again
FCX looks like it is bull-flagging.
An explosive rally in mining stocks is consistent with my bearish outlook for the overall market. Copper topped in spring 2008, about 7 months after the S&P 500 peaked. A move out of this pattern would at least be similar to what we saw gold do after hitting a new high.
I see this as a good hedge given my overall positioning. I’m not long this yet because the monthly candle does look a bit ugly. I’m waiting for an entry.
This isn’t the only copper stock worth considering. IVN.TO and SCCO have already broken out, but COPX, the ETF, looks like FCX. I use FCX as a proxy given its size and also because it has greater options liquidity.