Copper Could Be Telling A Different Tale

Copper has long been know as a leading economic barometer for the major stock indexes. Today copper is trading lower on the trading session despite the huge stock market rally in the major stock indexes. This afternoon the iPath Dow Jones UBS Copper ETN (NYSE:JJC) is trading lower by $1.07 to $56.78 a share. This is very unusual action in the industrial metal when the stock market indexes are sharply higher. Last night the Shanghai Index(China) was basically flat and that could be the cause of today’s weak action in copper. If it is not then weak copper could mean that more stock market declines are coming again soon.

Freeport McMoRan Copper & Gold Inc. (NYSE:FCX) is trading higher today by 0.49 cents to $52.27 a share. This stock is holding up well considering the weak action in the JJC. FCX stock will have intra-day support around the $51.90 area.

Southern Copper Corp. (NASDAQ:SCCO) is another leading copper producer that is trading slightly higher today. The stock is trading higher by 0.30 cents to $40.18 a share. Southern Copper stock will have intra-day support around the $39.70 area should it pullback or decline. It is rare to see the leading copper stocks trade positive when the actual commodity is loweron the day.

About Nicholas Santiago 576 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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