Copper Looks Tarnished
Copper is known to be a leading stock market indicator by many traders and investors. The highly used industrial metal will represent global growth when it trades higher. On the flip side, when copper declines it will usually tell investors that the economy is contracting or slowing down. Copper has lagged the major stock indexes since last year. This morning, the iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) is trading lower by 0.96 cents to $49.02 a share. Short term traders can look for intra-day support around the $48.70 area.
Some leading copper stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), and Vale (ADR) (NYSE:VALE) are all coming under some selling pressure with the metal. Traders and investors should note that all of these leading stocks remain in a weak technical position on the daily charts.