Trend: On FCX -- Just a quick question. MACD looks very extreme on FCX (as well as a few other indicators). FCX at approx $30 -- seems to me to be half of trading it was doing a few weeks ago or so.
Is your experience that these type of extremes do not usually wind up in a rebound? I didn't buy FCX but I look at FCX and other stocks as leading indicators for potential bottoming and topping type action.
FCX to me seemed to signal a temporary bottom might be in. Other stocks did as well, especially when I saw that mid day that the China stocks like really beaten down DEER and others were actually gaining ground.
I only use these observations as an indicator. If these indicators look good, then I step into a few things (e.g., I bought a small about of FAS (3x XLF) and DRN (3x IYR) today -- I liked DRN given the action in SPG today).
I may be wrong but stop I think can be relatively tight given the violation of SPX 1120 and then retaking ht level and then getting into 1125-30 area. Not perfect in my mind, since I wanted to see 1135 on SPX. Regardless I like the setup for the market to move up first (except that I expect to see some type of test of lower support during the day tomorrow).
I know your trading regime is different (and I admire it greatly), I was just wondering given these extremes in FCX that we are seeing reflected in MACD, that why you think another leg down is imminent? Thx, Mike
