A note to readers: I was deciding between this and Freemont-Mcmoran Copper & Gold (FCX) as my third posted trade. FCX is also a high beta commodity name with big gains since March. With China’s bubbly copper purchases running out of fuel (and the beginning of the liquidity extraction process there), FCX is a great fundamental and technical play, especially if the USD continues climbing. It also had a huge down day today.
And according to Nomura, FCX is 17th on the list of highest trading value equities, with a monthly turnover of over 67%, underscoring how much of a high beta, hot potato stock this really is.
If the market continues its sell-off, FCX should me among the hardest sold names. It remains perched on its 200DMA right now but I am selling/shorting strength at this point and the bounce to $72 and subsequent correction triggered my short at the $71 level. Markets are choppy right now, so this could be a stock we have to try a few times on the short side before we get a sustainable position that isn’t stopped out.
When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns – or dollars. take your choice – there is no other – and your time is running out.
Trade 6: Short FCX
8 02 2010As I stated in an earlier post:
And according to Nomura, FCX is 17th on the list of highest trading value equities, with a monthly turnover of over 67%, underscoring how much of a high beta, hot potato stock this really is.
If the market continues its sell-off, FCX should me among the hardest sold names. It remains perched on its 200DMA right now but I am selling/shorting strength at this point and the bounce to $72 and subsequent correction triggered my short at the $71 level. Markets are choppy right now, so this could be a stock we have to try a few times on the short side before we get a sustainable position that isn’t stopped out.