What You Need To Know About Base Metal Stocks

This morning, all of the major stock indexes are trading lower to start the day. One important sector that is declining lower today is the base and industrial metal stocks. This sector is very closely related to the Chinese economy. China has been the growth engine of the world until last year when the Chinese economy began to slow down. This is exactly when the base and industrial metal stocks topped out. Often, when the Chinese stock market comes under selling pressure the base and industrial metal stocks will trade lower. Recently, there have been many rumors that the Chinese government would begin to stimulate (inflate) their economy, however, the important Shanghai Index (Chinese stock market) has sold all short term bounces. The weak China economy has kept the leading base and industrial metal stocks somewhat depressed.

One leading base and industrial metal stock that is trading lower today is Freeport McMoRan Copper & Gold Inc (NYSE:FCX). Today, FCX stock is declining lower by 0.62 cents to $37.87 a share. Short term traders should watch for intra-day support around the $37.65, and $37.40 levels.

Please remember, all of the base and industrial metal stocks will generally trade inverse to the U.S. Dollar Index, therefore, should the dollar decline the base metal stocks could catch a bid. Some other leading base and industrial metal stocks that are declining lower today include Rio Tinto plc (ADR) (NYSE:RIO), BHP Billiton Limited (ADR) (NYSE:BHP), Teck Resources Ltd (USA) (NYSE:TCK), and Vale SA (ADR) (NYSE:VALE).

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

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.

Visit: InTheMoneyStocks

Be the first to comment

Leave a Reply

Your email address will not be published.


*