What Is Copper Telling Us?
Many professional traders and investors will follow copper closely. The industrial metal is known throughout history to be a good leading indicator for the economy and the stock markets. Many traders can now track the action in copper by following the iPath DJ-UBS Copper TR Sub-Idx ETN (NYSE:JJC). Today, the JJC is declining lower by 0.52 cents to $45.51 a share. Short term traders should watch for intra-day support around the $45.00, and $44.50 levels. The JJC should have good daily chart support around the $43.70, and $42.00 levels. In the near term, the JJC is a little oversold on the daily chart so a minor bounce should not be ruled out at this time.
The leading copper stocks in the market are Southern Copper Corp (NYSE:SCCO), and Freeport-McMoRan Copper & Gold Inc (NYSE:FCX). Another equity that tracks and follows the copper mining stocks is the Global X Copper Miners ETF (NYSEARCA:COPX). Today, the COPX is trading lower by 0.22 cents to $12.45 a share.