Copper for July delivery was gaining 1.2% to $4 a pound, edging higher after three straight days of losses as "some bargain-hunting sets in," says MF global analyst Ed Meir.
Meir notes that it was a "very bloody week for the commodity bulls" last week, "with the Reuters-Jefferies CRB finishing 9% lower over the period" amid a spate of weak jobs reports; more concerns about debt-laden Greece; and the CME's third margin hike in just a few days, which forced many traders and funds to liquidate positions.
On Friday, July copper settled below the psychological $4 a pound level at $3.9755 per pound -- a five-month low -- selling off with the euro and other currencies."We have maintained our bearish stance on copper for some time and suggested buying put options," says John L. Caiazzo, the CEO of brokerage firm Acuvest. "It might be appropriate to take some of the profits off the table." A correction usually follows a sharp move in copper, Caiazzo notes. Despite much negative news flow about the economy, Crédit Agricole Corporate and Investment Bank's Senior Metals Analyst Robin Bhar believes that help is on the way following the elimination of Osama Bin Laden. "The action taken by special forces that resulted in the death of Bin Laden has strengthened the leadership of President Obama," Bhar notes. "This could be an opportunity to facilitate broad-based bi-partisan progress in key economic issues. Freeport-McMoRan Copper & Gold (FCX) was rising 0.9% to $50.61, while peer Southern Copper (SCCO) was losing 0.5% to $35.31. Copper miner Taseko Mines (TGB) was rising 2.7% to $4.96. Copper fabricator Encore Wire (WIRE) was down 0.6% to $25.19. Mining equipment maker Bucyrus International (BUCY) was flat at $91.27, while peer Joy Global (JOYG) was rising 1.8% to $91.10. Caterpillar (CAT) was adding 1.1% to at $111.51. >>Search for Highest Dividends by Rate or Yield
|More on Earnings Today's Top Earnings|
>To contact the writer of this article, click here: Andrea Tse. >To follow the writer on Twitter, go to Andrea Tse.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV