Commodity Leaders Feel The Pressure
As you all know by now, every trade is essentially a dollar trade. The leading commodity stocks will usually feel the pressure the most when the U.S. Dollar Index rallies. Therefore, traders should always watch for weakness in stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Cliffs Natural Resources Inc.(NYSE:CLF), and United States Steel Corp.(NYSE:X) when the dollar trades higher. While these stocks are the first to decline on the back of a stronger U.S. Dollar, they are also the first stocks to react to a U.S. Dollar pullback.
Short term day traders can look for some intra-day support on FCX around the $47.00 level. This stock is in a daily chart downtrend, therefore, any bounces in the stock are just short term moves at this time. CLF will have good intra-day support around the $85.49 and $85.00 levels. Again these support levels are just for the short term day trader.