July 04, 2011 at 12:56 pm | | Comments 0

FCX 7% in 3.5 Days, Time to Lighten Up

Last Tuesday I pointed out FCX as not only a potential market tell (since copper has proven to be a leading indicator many times), but also as a breakout play through a trend line after holding key support.  That post was published as the stock threatened to break $50.

Fast-forward 3 1/2 trading sessions, and FCX now sits at $53.50, or 7% higher.  That’s a quick pop (which I hope you caught a piece of at the very least), so the fast money has been made.  While the stock looks great for an intermediate-term position play, for short-term traders it’s time to lighten up.

A pullback is going to come, so for those only interested in grabbing the initial move, this is it.  Ring the register and move on to the next play.

Here’s a look at FCX, showing the push through the descending trend line and a rally past the previous high from May 31.  Not bad for a freebie:


Chart courtesy of TeleChart

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