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Move on Metals While They're Down

Buy copper, aluminum and gold stocks off the negatives from Phelps Dodge and Alcoa.
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This column was originally published on RealMoney on Jan. 10 at 9:49 a.m. EST. It's being republished as a bonus for readers.

Go ahead, sell

Phelps Dodge

(PD) - Get PagerDuty, Inc. Report

. Decide that the cycle has peaked. Ring the register on


(AA) - Get Alcoa Corporation Report

. Decide that there's nothing good there.

Excuse me for using these two disappointments for opportunities, but that's how I am looking at it. The mining companies are not going to quit here, we are getting guide-ups in the Chinese economy, we are scrapping ships for steel, we are desperate for metals, and you are going to sell all of them on these two reports?

First, Phelps has run so much that, like a tech stock, it has to be perfect, and it was far from perfect, as

this guidance slash shows. Buy the other copper plays off of it.

Second, Alcoa is just plain poorly run, beyond anyone's belief. Buy the other aluminum companies off

TheStreet Recommends

this shortfall.

Finally, buy a gold stock, just as a hedge to the idea that the dollar will top out when the


is done and the petrodollars will flow into the yellow metal.

All of these stocks are indicated down. They won't stay down. Make your move.

I know I am.

James J. Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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