Monday, June 14, 2010

Watching Freeport-McMoran (NYSE:FCX) Through Copper Prices

With copper prices being the primary metric to use with Freeport-McMoran (NYSE:FCX), it's the major indicator as to where the share price of the company will go.

Mirroring the mixed economic news that has been coming out recently, copper traders are buying puts and calls today, indicating the uncertainty as to the direction of copper prices going forward.

Part of this is probably from the news the industrial sector of Europe was in better condition last month than anticipated, heightening the idea demand for copper and other raw materials may be in higher demand than expected.

I find that hard to believe, but it did add uncertainty to the market, as evidenced in the behavior of traders.

Either way, copper prices are what we watch, and it really doesn't matter what way traders think things will go for those investing for the long term, it only matters which way they actually go, and what the demand really is.

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