Sunday, October 23, 2011

FCX - A stock to watch

On Thursday, FCX hit on my short term buy signal, and had two confirmation signals hit as well (My daily signal still shows distribution but close to a confirmed buy signal, as well).  This weekend Barrons wrote a positive article on the company that shows a severe discount to replacement values.  Ironically, this is true for almost all the miners right now. When the market reacts to this price/value mismatch in the miners is a mystery to me, but I am anxious to play it again on the long side.

FCX is now on my daily watchlist to trade against my short term signals.  I am passing on this signal for now, and will await the next buy set up and allow some of the euro drama to play out this week.

Personally, I think we either get a sell the news event, or worse, a sell off due to a recognition of the intractable nature of the debt situation.

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