Thursday Morning Thread

Gator's Chart of the Day: FCX

Last time we looked at Freeport McMoRan was following the action on 3/20 (in the ellipse) where it printed a pretty green candle with a tail on increasing volume.  I said the support line looked good and I was looking for a move higher.  It didn't last long.  Now that support has failed on the highest volume since January or maybe all the way back to October a new plan seems appropriate.

The news from China now suggests they could be slowing more than expected and the hard landing phrase is being used again.  With that in mind it could be the right time to short or buy some puts.  A fall to 35 or lower seems to fit the picture.  That would require a close outside of the lower Bollinger band if it is to happen soon so it could take a few days to complete.  My record with puts is not exactly stellar but I may try again with FCX.

Edit: A "buy stop" or sell the puts would be appropriate if the stock moves back above the lateral white line.