Monday, 11 May 2015

FCX, TCK - weak copper miners

Whilst the broader market saw moderate weakness into the close, there were significant declines for the copper miners. Freeport McMoran (FCX) and Teck Resources (TCK) settled lower by -1.4% and -3.9% respectively. Near term outlook is bearish, before renewed upside into June/July.

FCX, daily

TCK, daily


*first, an update on Copper, monthly

Copper - like Oil and many other commodities, is seeing a multi-month bounce.. but the big $3 threshold will not be easy to break/hold.

Deflationary downside for the summer would be the low $2s... along with Gold $1000 and Silver 12/10.

As for FCX and TCK, FCX is clearly the superior stock, but now its vulnerable not only to weak Copper prices, but Oil prices - as it has a sig' Oil/gas subsiduary.

*I have ZERO interest in going long ANY of the miners (Gold, Silver, Copper, or Coal) until the autumn... at which point Gold should be around $1000.