Courtesy of Chris Kimble.
The quiz of 9/29 reflected that key support was at hand, suggesting a buying opportunity. (see original quiz post) The quiz found Freeport McMoran (FCX) on support dating back almost 15 years. Last week FCX rallied over 20% off its lows, as Copper had a strong week.
Now check out the pattern below…
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Copper formed a rather large bearish rising wedge in May, suggesting a two-thirds chance of lower prices. FCX reflected a good time to harvest at a series of lower highs this summer, then it bounced off of support this past week dating back 10 years and now it is up against its 23% Fibonacci resistance and a falling channel line. Was last week a short covering rally in the Copper/FCX arena or something bigger?
FCX fell almost 40% in 6 weeks, almost twice what the 500 index did. A macro message can come from FCX and JNK below!
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I prefer to chart the High yield mutual funds over JNK/HYG, yet wanted you to see what was happening with JNK of late. High yieldS have been pounded of late and jnk’S OBV is down to the 2008 lows…interesting rally off of line (1) today! I will update the high yield funds in the next two days.
