Read inthemoneystocks' blog in RSS
October 3, 2011
Share This
The one sector in the stock market that has been absolutely annihilated since July 2011 is the commodity sector. Since the March 2009 stock market low it has been the commodity stocks that have inflated and traded higher leading the major stock indexes. However, all of the industrial metals and leading commodity stocks have lead the markets lower throughout 2011. This morning, many leading commodity stocks are trying to inflate higher. The bounce in many of these leading stocks is somewhat limited.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is a leading copper producer in the world. Many traders view FCX stock as a copper barometer. This morning, FCX stock is trading higher by 0.22 cents to $30.67 a share. In July 2011 FCX stock was trading as high as $56.00 a share. This just shows us the magnitude of the decline in just the past three months. Traders can watch for intra-day resistance on FCX stock around the $31.36 level. The stock will have short term intra-day support around the $30.00 area.
Other leading commodity stocks that are trying to stage a bounce this morning include Cliffs Natural Resources Inc (NYSE:CLF), BHP Billiton Ltd (NYSE:BHP), and AK Steel Holdings Corp (NYSE:AKS). Often these stocks will trade inverse to the U.S. Dollar Index, therefore, traders should expect further commodity declines if the U.S. Dollar Index remains strong.
Nicholas Santiago
InTheMoneyStocks.com