Southern Copper vs. Spot Copper: TA That's Hard to Ignore

Mar.24.08 | About: Southern Copper (SCCO)

So above we have a kitco chart of spot copper for the last 5 years, and below we have a bigcharts view of Southern Copper (PCU) for the last 5 years. Err...that's it, really.

Gary from biiwii and others know I don't care much for technical analysis, but it's madness to ignore the kind of relationship shown above, simple as it might be. I've been bullish on PCU since it was around U$23 (split adjusted), and so far it's been one helluva trade. I even went neutral on PCU when it got to U$125, and although it blew out above that a few days later the call was fair (never called it a a sell or a short, though).

Right now? Buy it.

Currently, fear and greed debate on whether miners will continue upwards, whether China commodities demand will slow, whether this that or the other. Most of it is pure noise and comes from people with the analytical capabilities of fruit flies. PCU and other large copper producers are licences to print money, and my totally correct and unbeatable views on copper going forward are already on record. Modest, huh?

So today's market reco?

1. Buy PCU right here right now

2. Take a very long fishing trip, and unless you're a finance professional or you want to foster your own neuroses don't listen to the incessant market chatter.

3. That's all. Have a nice day.