The leading commodity stocks are coming under some early selling pressure this morning. Traders must understand that it is the commodity stocks that have lead the recent declines in the markets. Leading commodity stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Cliffs Natural Resources Inc (NYSE:CLF), and BHP Billiton Ltd (NYSE:BHP) should all remain weak if the U.S. Dollar Index can gain some strength and trade higher throughout the trading day.
Traders can watch for some short term intra-day on FCX stock around the $33.00, and $31.00 levels. This stock is considered the leading commodity stock in the market and also a stock market barometer for copper. When FCX declines it is usually telling us that all commodities will likely come under pressure. Copper is considered a leading indicator for the overall markets making Freeport McMoRan stock a very important equity to follow.