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One day a trend does not make! Yesterday some technical support breaks took place that I will address in an upcoming post. Key chart patterns are in place in the above two charts, in that Copper could get tripped up at these lofty levels. The up coming price action of these two should tell us much about future trends and positions investors will want to take.
Game Plan…Will look to score on defense via the inverse basic materials ETF (SMN) on a breakdown. Took positions to score on defense yesterday in the stock market via buying VXX, which was up over 5% yesterday (see post here) and buying the inverse Russell ETF RWM (see post here).
Thanks for the honest feedback Chris! Getting to be a regular here on your site (I check for updates throughout my trading days). Thanks again.
Kevin….Copper futures and options are played by many. I remain comfortable with SMN when the risk/reward conditions are good and for short periods of time. I don’t care to hold the 2x etfs for a long period of time, as most know, slipage is way too much.
I like the idea Kevin of SMN for a dual reason…If copper/base metals falls and the general stock market falls, this ETF has great potential. For the conservative investors? NOT!!! In certain conditions, for some!
Hi Chris, is there a vehicle you use for trading copper specifically? I’ve been watching the good Doctor myself, and agree with your article, however FCX puts are a bit rich for my account? Thanks. Don’t want to get into any of the base-metal ETF’s and definitely want something optionable. Thanks again.
SLV broke support at 27.50 – now at 27.05