A week ago, we noted to our members to keep a close eye on Freeport-McMoRan Inc. (FCX).
The chart pattern argued for the price to thrust into a new upleg after completing a 3-week correction.
The correction, from 15.27 on July 26 to 13.81 on Aug 11, held key multi-month support, and positioned the chart into a bullish cup-and-handle formation.
Given the compelling technical set-up -- portending greater demand and inflationary pressures in copper and others metals -- we added FCX to our model portfolio on August 17 at 14.47.
The attached shows the pattern, which included a bullish flag and the start of what appeared to be break.
Five days later, JPM issued a bullish report about base metals prices, noting it is looking for better earnings in companies CENX, AA, TECK...and FCX!
Meanwhile, Jefferies strategist Sean Darby and team noted that materials stocks are "experiencing and enjoying underlying pricing power, a weak dollar, an expansionary China budget and M&A," even amid fears that President Trump’s infrastructure plans will be at delayed or eventually diluted.
All of which helped spur a rally to a high of 15.46 on Tuesday August 22, with the stock closing at 15.07.
Where is FCX headed next?
FCX thrust above its Jan.-Aug. resistance line on Tuesday morning, taking out its prior rally high at 15.27. As long as FCX can sustain above 15.00, the price structure projects directly to 16.60-17.00 next.
Last Friday afternoon (Sep 30), Mike Paulenoff ended his Gold Miner alert to MPTrader members with the following parting comment:
Just maybe the precious metals complex is approaching a perfect storm-- a weakening US Dollar, stubborn inflation, vicious and increasingly dangerous geopolitics et al...
Indeed, the Gold Miners ETF GDX outperformed the benchmark SPY ETF for the first time in months. After pressing to a low at 23.
This past Monday September 19, Mike Paulenoff alerted MPTrader members to an emerging setup in Raytheon Technologies (RTX), noting:
One of the recurring themes I read about that threads through coverage of the Russian-Ukraine conflict is that the vast amount of materiel sent to Ukraine from NATO countries to help Zelensky and his army fight Russia is older equipment and weaponry that sooner than later will have to be replaced by the donating countries.
On the afternoon of September 12, the day before the consequential August CPI report was released, Mike Paulenoff alerted MPTrader members to a key inflection point in the QQQ, writing:
The QQQ is strong ... heading towards a confrontation with its key resistance zone from 312.80 to 316.15 where my work expects QQQ behavior to inform us about the true underlying dominant trend-- to the upside in an extension of the June-August advance, or to the downside in extension and completion of the Aug-Sep.
On August 8, Mike Paulenoff was asked for chart analysis on CHPT by an MPTrader member.
Before the opening bell, Mike responded with the following chart-based commentary:
CHPT (ChargePoint Holdings)is getting a lift from the so-calledInflation Reduction Actmostly because of the feel-good reaction to the $7,500 electric vehicle tax credit (if you can afford to buy an EV in the first place) as well as earmarked funds supposedly heading for building out charging station infrastructure.
On Friday morning August 26, Jay Powell delivered a very brief, but considerably more hawkish-than-expected Jackson Hole speech that for all intents and purposes ended and reversed the 19% recovery rally advance in the SP.
That afternoon, with AAPL down 3% to 164.65, Mike Paulenoff posted a heads-up alert about AAPL to MPTrader members that called for continued downside in the most widely-followed name in the averages, writing:
AAPL has pressed beneath its prior pullback low at 166.