Anyone notice that since COB 6/3, FCX is up about 2.2% while SCCO is down about 2.72%. That's an almost 5% diversion in just 2 1/2 days!
Makes me wonder why? No news and these two are going in different directions ...... I know, I know, its only a short-term fluctuation ...... but why have the tutes so quickly moved these two in different directions?
I guess this divergence is caused by wide, across-the-board buying of U.S. equities. It goes mainly through index buying, lot of cash moved to equities last week. FCX is supposed to get better benefits being represented in numerous U.S. index funds, i.e. FCX stock is perceived by mainstream investing public as much better connected with U.S. market and economy.
On the contrary SCCO is more specialized copper play, essentially a foreign company for U.S. fund investors. Copper was under pressure last week, again caused by foreign events, and SCCO paid price. TCK was weak too, by the way; also a "foreign copper stock". Needless to say, "foreign" is not always a bad word for investment, it just happened that it worked against SCCO last week.
In other words, it is not a manipulation; it is an orderly market (ordered by investor sentiment) and SCCO drop last week has created new opportunity, imho. "Chinese investigation" worked last week to drop copper price, but looking in details of this event it's difficult to see it holding water for longer than few days. In my opinion, it's more like last attempt by well-connected Chinese bureaucracy to press copper down just a bit before it flies. Could this be called "manipulation", by the way? Maybe, but really it doesn't matter how you call it. It is more important how to use it.