This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Copper Prices Spike on Bargain Hunting

NEW YORK ( TheStreet) -- Copper futures were back in positive territory Monday morning as traders bought on the dip.

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 - Get Report) was rising 0.9% to $50.61, while peer Southern Copper (SCCO - Get Report) was losing 0.5% to $35.31. Copper miner Taseko Mines (TGB - Get Report) was rising 2.7% to $4.96.

Copper fabricator Encore Wire (WIRE - Get Report) 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 - Get Report) was adding 1.1% to at $111.51.

>>Search for Highest Dividends by Rate or Yield
More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CAT $76.36 -1.90%
FCX $12.01 -11.37%
SCCO $28.91 -2.10%
TGB $0.59 -4.15%
WIRE $38.50 -1.76%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs