The base metal stocks are rallying higher on the expectation of a Chinese Stimulus plan. Many of the base metal stocks including BHP Billiton Limited (ADR) (NYSE:BHP), Rio Tinto plc. (ADR) (NYSE:RIO), Cliffs Natural Resources Inc. (NYSE:CLF), and Southern Copper Corp (NYSE:SCCO) could see a potential rally over the next few days. BHP is trading higher by $2.31 to $64.12 a share; look for intra-day resistance around the $64.25, and the $65.05 levels.…Continue
This morning, all of the leading base and industrial metal stocks are catching a bid higher. It is important to note that this sector has been very weak since the start of the year. A case can be made that the leading base and industrial metal stocks have been weak since March 2011. One of the leading stocks in the sector is Freeport McMoRan Copper & Gold Inc (NYSE:FCX). This stock is very oversold on the daily chart and is really due for a short term bounce. Today, FCX stock is…Continue
Added by Bryan Leighton on May 16, 2012 at 10:39am — No Comments
By now everyone should know that when the U.S. Dollar Index is strong the major stock and commodity markets will deflate and trade lower. Most leading commodity stocks are falling sharply lower today as the U.S. Dollar Index futures surge higher. Traders can easily see how the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading higher by 0.17 cents to 22.51 a share.
This afternoon, most leading oil, mining, and coal stocks are trading sharply lower.…
Added by Bryan Leighton on May 15, 2012 at 3:58pm — No Comments
This morning, all of the leading base metal stocks are fading from their gap higher open. Around 8:00 am EST, the Federal Reserve Chairman Ben Bernanke stated that he would consider more accommodating policies for the U.S. economy in order to stimulate job growth. This statement crushed the U.S. Dollar Index futures (DX-M2) and spiked the stock markets higher. At the start of the day, leading commodity and base metal stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX),…Continue
Added by Bryan Leighton on March 26, 2012 at 10:24am — No Comments
This morning, the U.S. Dollar Index is declining and that is helping to inflate the major stock indexes once again. Normally, energy and commodity stocks will be the first equities to inflate when the U.S. Dollar declines, however, these days everything in the market including technology stocks will inflate as soon as the U.S. Dollar dips. It seems that the institutional traders simply have the computers set to buy the markets on any decline in the greenback.…
Added by Bryan Leighton on February 24, 2012 at 10:48am — No Comments
Many of the leading base metal producing stocks are struggling to catch a bid this morning. Rio Tinto Plc (NYSE:RIO) is a leading stock in the base metals and materials sector that is coming under some early selling pressure. This market leader is declining by $1.31 to $60.22 a share. The decline in this market leader comes despite a strong copper, gold, and silver market today. RIO will have short term intra-day support around the $60.00 and $58.75 levels.
Added by Bryan Leighton on February 9, 2012 at 11:23am — No Comments
For over ten years now the major stock indexes have traded inverse to the U.S. Dollar Index. That inverse relationship is back in full force today. Anyone can easily see how the S&P 500 Index e-mini futures (ES H2) jumped off the morning lows as soon as the U.S. Dollar Index tumbled lower. All traders and investors should have a chart of the U.S. Dollar Index futures (DX H2) up at all times. If traders do not have the U.S. Dollar Index chart available the PowerShares DB US Dollar…Continue
Added by Bryan Leighton on January 27, 2012 at 10:14am — No Comments
All of the major leading industrial metal producers are trading higher this morning. The catalyst for the move higher in these stocks is the weaker U.S. Dollar Index. These days the inverse relationship between the U.S. Dollar and the major stock indexes has decoupled due to the light volume in the market, however, a weak dollar still helps to inflate commodities.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is the world's leading copper producer. This stock…
Added by Bryan Leighton on January 12, 2012 at 10:32am — No Comments
All across the media the headline reads that commodities are rallying on Alcoa's bullish forecast. Alcoa reported a loss for the fourth quarter in case people did not see. Rarely, if ever does Alcoa even move the markets these days. More important than the poor Alcoa earnings report was the fact that the Shanghai Index (China) finally caught a bid over the past two trading sessions. That two day rally in China was also good for about 5.0 percent to the upside. This is the catalyst for…Continue
Added by Bryan Leighton on January 10, 2012 at 4:02pm — No Comments
When the precious metals decline, there is a very good chance that deflation is taking hold. This morning, both gold and silver are declining sharply lower. The SPDR Gold Shares (NYSEARCA:GLD) are trading lower by $4.49 to $161.96 a share. This is a decline of 2.60 percent for the GLD and this signals deflation in the stock market. The iShares Silver Trust (NYSEARCA:SLV) is trading lower by $1.00 to $30.33 a share. The SLV is declining lower by 3.25 percent and this is also signaling…Continue
Added by Bryan Leighton on December 12, 2011 at 10:34am — No Comments
This morning, all of the leading commodity stocks are coming under sharp selling pressure. The catalyst for the decline in the commodity sectors and the major stock market indexes is the stronger U.S. Dollar. Today, the U.S. Dollar Index futures (DX Z1) are trading higher by 0.40 cents to $78.95 per contract. To make a long story short, when the dollar rallies higher the major stock and commodity sectors will deflate and trade lower. Every trade is essentially a trade on the U.S.…Continue
Added by Bryan Leighton on December 8, 2011 at 10:55am — No Comments
All of the leading industrial metal stocks are trading sharply lower this morning. When there are signs of an economic slowdown this sector will usually come under selling pressure. Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is a leading copper producer that is trading lower by $1.07 to $35.87 a share. This stock should have intra-day chart support around the $35.00 and $34.00 levels. Many traders and investors follow copper very closely as a leading economic indicator.…Continue
Added by Bryan Leighton on November 21, 2011 at 10:50am — No Comments
The chart below clearly shows how the U.S. Dollar Index impacts the overall stock market indexes. Traders can clearly see when the U.S. Dollar Index futures (DX Z1) decline the S&P 500 Index e-mini futures (ES Z1) will inflate and trade higher. Just look at how the U.S. Dollar Index topped out exactly at 6:40 am EST, this is the exact time that the S&P 500 Index futures made their low.
The news coming out of the European Union is important, however, it is…
Added by Bryan Leighton on November 15, 2011 at 10:27am — No Comments
Many traders and investors follow the industrial metals very closely as a leading indicator. The legendary trader Jesse Livermore used to say that copper was one of the most important industrial metals that a trader could track. He said copper would tell the investor where the economy was headed. Today, the leading copper stocks have sold off from the morning gap higher open and this is worth noting.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is considered…
Added by Bryan Leighton on November 10, 2011 at 10:56am — No Comments
This morning, the U.S. Dollar Index futures (DX Z1) are declining ahead of the opening bell. Whenever the U.S. Dollar Index declines the major stock indexes around the world will inflate and trade higher. If and when the U.S. Dollar Index rallies or trades higher the major stock indexes will deflate and trade lower. The bottom line, if this stock market is to trade higher the U.S. Dollar Index must weaken and trade lower. Essentially, every trade is a trade on the U.S. Dollar at this…Continue
Added by Bryan Leighton on November 8, 2011 at 9:53am — No Comments
The only chart that traders need to pay attention to is the chart of the U.S. Dollar Index (DXY). When the U.S. Dollar Index declines throughout the trading session the major stock market indexes will inflate and trade higher. Obviously, leading commodity and energy stocks such as Cliffs Natural Resources Inc (NYSE:CLF) BHP Billiton Ltd (NYSE:BHP), and Chevron Corp (NYSE:CVX) will be some of the first stocks to react and trade inverse to the U.S. Dollar Index. It is important to note…Continue
Added by Bryan Leighton on November 7, 2011 at 10:49am — No Comments
This stock market seems to have an illness called schizophrenia. In late September, the major stock indexes declined lower, the Dow Jones Industrial Average dropped by over 1000.0 points only to recapture all of those declines in 15 trading days in the month of October. Ten percent rallies and declines are becoming normal trading ranges these days. In the past, the stock markets would rally higher or lower by ten percent in a year. These are certainly not normal times.…
Added by Bryan Leighton on October 25, 2011 at 10:39am — No Comments
The industrial metals are leading the markets lower this afternoon. Leading commodity stocks such as Southern Copper Corp (NYSE:SCCO), Rio Tinto plc (NYSE:RIO), BHP Billiton Ltd (NYSE:BHP), and Vale SA (NYSE:VALE) are declining sharply lower. This industry group has shown weak relative strength when compared to the major stock market indexes. Since the October 4, 2011 stock market low these leading stocks have been unable to trade above their daily chart 50 moving averages, meanwhile,…Continue
Added by Bryan Leighton on October 17, 2011 at 3:41pm — No Comments
As you all know, the major stock indexes have soared over the past week. The Dow Jones Industrial Average (DJIA), the NASDAQ Composite, and the S&P 500 Index have all surged sharply higher recapturing their daily chart 50 moving averages. Whenever an index can recapture an important moving average that is usually a sign of short term strength. Here is the problem with this recent rally if we can find one. The base metals still remain very weak.
Leading base metal stock such as…
Added by Bryan Leighton on October 12, 2011 at 4:08pm — No Comments
Added by Bryan Leighton on October 10, 2011 at 11:12am — No Comments