Copper, the stuff update and FCX, Freeport

copper s oct 2012copper dec 2012

The then (29th of Oct.) and now charts. This is a bona fide triangle, E-Waver’s dream as these things are highly predictive and accurate. This triangle is in a B-wave position, not a fourth, therefore the expectation is for a C-leg to start any moment now and travel, perhaps, the same distance as the A-leg. That would bring copper to about $2.20 a pound and , yes, we are aware that the Chinese will do more to stimulate but for the moment their Shanghai index recorded a 3 year low. Stocks like FCX, Freeport will not fare well under such circumstances.

Here are the Freeport McMoran Copper and then (Jan) and now charts for a comparison;

fcx s jan 2012FCX dec 2012

We recommended a sell at the time (at $45) even if it might go a little higher. At today’s level of , give or take $31 that is a tidy saving. The company decided to go into the oil business presumable to diversify. Presently it may be tracing out a similar triangle to the metal itself, even if it is running behind just a bit. The e–leg is missing but these can be awfully short so it wont take much to get the two realigned. Sell all copper related stocks, except perhaps Ivanhoe, see next..