Industrial Metals Continue To Inflate
The industrial metals stocks are continuing there winning ways this morning. Since the October 4, 2011 stock market pivot low the industrial metals have soared sharply higher. Leading stocks such as Freeport McMoRan Inc (NYSE:FCX), Southern Copper Corp (NYSE:SCCO), U.S. Steel Corp (NYSE:X), and Cliff Natural Resources Inc (NYSE:CLF) have rallied throughout the trading session. Traders should watch for some intra-day resistance on FCX stock around the $36.00 and $36.75 levels.
At this time, everything in the stock market is inflating higher. The catalyst for the rally in the industrial metals is obviously the falling U.S. Dollar Index. As long as the U.S. Dollar Index continues to decline the leading commodities and metal stocks should inflate and trade higher. Ironically, the U.S. Dollar Index topped out on October 4, 2011 which is the exact time that the leading industrial metal stocks and the major stock indexes bottomed out. Traders should continue to follow the inverse relationship between the U.S. Dollar Index and the stock markets.