Copper has been in rallying mode since December 15, 2011. At that time, the iPath Dow Jones Copper Subindex Total return ETN (NYSEARCA:JJC) was trading as low as $42.64 a share. This morning, the JJC is trading lower by 0.57 cents to $48.56 a share. Short term traders can watch for intra-day support around the $48.40, and $47.85 levels.
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.
(MMS, GBLHF, FCX, MMM) Stock in Focus by CRWEPicks.Com
Yesterday, most stocks and commodities took off and rallied to the upside. The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEARCA:JJC) opened sharply higher and actually closed above the important daily chart 50 moving average. This is generally viewed as a sign of strength by most seasoned traders.
Commodity Stocks Drop On The Back Of Dollar Strength
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.
Joseph Piotroski's 9-point scoring system has proven a successful way to find value stocks that beat the market. Can we combine his method with the "good company at cheap price" precepts of Magic Formula Investing (MFI) to find potential winners? In this article, we take a look at MFI stocks with 8 or 9 Piotroski scores.
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.
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.