Industrial Metals Head South for the Winter

Many traders and investors follow the industrial metals very closely as a leading indicator. The legendary trader Jesse Livermore used to say that copper was one of the most important industrial metals that a trader could track. He said copper would tell the investor where the economy was headed. Today, the leading copper stocks have sold off from the morning gap higher open and this is worth noting.

Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is considered the leading copper stock in the entire stock market. This morning, FCX stock is trading lower by 0.11 cents to $38.70 a share. Traders can look for intra-day support around the $38.00 and $36.50 levels.

Other leading industrial metal stocks that have sold off from the morning highs include Southern Copper Corp (NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and BHP Billiton Ltd (NYSE:BHP). When the leading industrial metals stocks rollover it is usually a negative sign for the major stock indexes. Traders should also follow the U.S. Dollar Index(DXY) closely as these stocks will generally trade inverse to the DXY.

About Nicholas Santiago 575 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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