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 the leading copper stock in the entire stock market. This morning, FCX stock is trading lower by 0.11 cents to $38.70 a share. Traders can look for intra-day support around the $38.00 and $36.50 levels.
Other leading industrial metal stocks that have sold off from the morning highs include Southern Copper Corp (NYSE:SCCO), Cliffs Natural Resources Inc (NYSE:CLF), and BHP Billiton Ltd (NYSE:BHP). When the leading industrial metals stocks rollover it is usually a negative sign for the major stock indexes. Traders should also follow the U.S. Dollar Index(DXY) closely as these stocks will generally trade inverse to the DXY.