Copper Could Be Telling A Different Tale
Copper has long been known as a leading economic barometer for the major stock indexes. Today copper is trading lower on the trading session despite the huge stock market rally in the major stock indexes. This afternoon the iPath Dow Jones UBS Copper ETN(NYSE:JJC) is trading lower by $1.07 to $56.78 a share. This is very unusual action in the industrial metal when the stock market indexes are sharply higher. Last night the Shanghai Index(China) was basically flat and that could be the cause of today's weak action in copper. If it is not then weak copper could mean that more stock market declines are coming again soon.
Freeport McMoRan Copper & Gold Inc.(NYSE:FCX) is trading higher today by 0.49 cents to $52.27 a share. This stock is holding up well considering the weak action in the JJC. FCX stock will have intra-day support around the $51.90 area.
Southern Copper Corp.(NYSE:SCCO) is another leading copper producer that is trading slightly higher today. The stock is trading higher by 0.30 cents to $40.18 a share. Southern Copper stock will have intra-day support around the $39.70 area should it pullback or decline. It is rare to see the leading copper stocks trade positive when the actual commodity is lower on the day.