Freeport McMoran Copper & Gold Rallied 50% off the Late August Lows

I had only been watching Freeport-McMoRan Copper & Gold (FCX) with one eye, until I noticed a chart yesterday on financial entertainment TeeVee of its parabolic run. Pulling up my own chart today I see the stock had run in “computerized like” fashion to exactly touch $100 from its lows in the mid $60s in late August… aka a 50% run in 7 weeks. Epic.

Lesson learned on this one – I was late on the commodity train and had decided in early September to buy an iron ore play, Cliffs Natural Resources (CLF) as a ‘catch up’ idea. In theory this could have worked – but I chose the wrong subsector – something in the agricultural space would have been a far better choice. So rather than a 50% run from trough to peak, the best you could have done in CLF is 20%… a huge difference.

But going back to the K.I.S.S. method – everyone in the market knows FCX is the hedgies “go to” stock for commodity exposure so why complicate it? Just chase exactly what the hedgies (carbon based and silicon) are chasing, and don’t try to think… this market hates any form of sophistication or thought. Noted.

Disclosure: No position

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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