Cautiously optimistic this bout of selling might be petering out. Hopeful this divergence closes with FCX rising. Have tight stops set if wrong. The gap above and a possible turnaround Tuesday tomorrow are also worth considering if you are playing short term.
First, China: The new basis in China is in place, it is purchasing copper in significantly large and constant quantities that total sales will continue to drastically apex sales of just 5 years ago. What difference does a quarterly % increase make, when it is still higher in total volume? None, the new basis levels for years to come are at peak production quantities and prices are stable as the total demand is NOT decreased in any way - in fact, just the opposite.
Second, Market overreaction is certain. 80% of FCX is copper, and gold is only down only 3.5% in futures trades alone. Thus the math does not support this overreaction to perceptions. Gold is one commodity that FCX really doesn't need to sell. It is an asset. If the dollar is strong, then the asset must be compared to the purchase power. The whole market down today. No new news than last week.
Third. FCX is diversified and will soon be getting O&G revenue to add to the mix plus the GOM deep water sub salt production. A strong dollar only enhances that asset.
Saw that some of the same players that hold gold also hold FCX so some liquidation of both. I hope that FCX has a good story on Thursday and greed overcomes fear. Guidance will be tough though with commodity sell off.