FCX - Who is the winner? (11 Sept ,2008)

I was thinking about trading this stock, fortunately I had a technical problem with my trading platform. But this charts looks interesting, to understand what is going on with this big metal name.

First thing in the morning, you see a gap down causing this stock to appear having a 1.50 dollar loss. Then you see sellers selling this stock by 4 dollars.



But right now you see buyers buying and it is making its way up. Note the volume.


Looks like the buyers are very precise, because I only saw this number of positions when I refreshed my page.


It is quite dangerous to trade commodities if it goes sideways, because nobody knows where it is heading. A lot of these names are oversold, but the conditions are not favorable for a commodity bull market either. Another point you should note is....do not follow futures prices when trading commodity stocks. The correlation has broken.

From my observation, the Hedge funds have bailed out of their positions from FCX. So while hanging around, they are just playing with volatility.