China Pop Lifts Commodity Stocks
Last night, the important Shanghai Index(Chinese market) rallied higher by 1.38 percent. This type of rally in the Chinese markets will often help lift the popular commodity stocks. This morning many leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF), are all trading sharply higher.
It is also very important to note that the U.S. Dollar Index is trading sharply lower today and this will usually help to inflate most of the leading commodity stocks higher. Should the U.S. Dollar Index find support and rally the leading commodity stocks could pullback or deflate lower.
Short term traders can watch for short term intra-day resistance on FCX around the $109.35 level intra-day. Should the U.S. Dollar Index decline further FCX stock could trade higher. The opposite would be likely occur if the U.S. Dollar index rallies as traders should look for a decline in FCX.