SELL-BUY-SELL Strategy
Recent new release from several outlets upgraded FCX to a weak BUY on 4/27, Company missed earnings largely due to COVID19, Company shuffling finances around quickly to shore up losses along with fur-low's and layoffs, outlook for 2020 bleak but hopeful. Copper prices rally'd yesterday with an expected pause in it's rally today or tomorrow for a sell off in the commodity. FCX's Gold holdings are weak and production less than desirable to make the company profitable. Company is not profitable at this time and has lost much of it's equity due to loss of income. Long Term reentry into the stock @5.55 to 6.03.
My current strategy for me is to look for an exit of my 9.5 short position when the stock is between 7.85 and 8.33; then quietly wait for the short squeeze to complete this week. Potential reentry into a SHORT position when the stock retests its 9 and 9.48 R levels. Final exit from my short position at a target range of 6.03 to 6.44. This is not advice to purchase, sell, or acquire equity's in FCX - This is all based upon my analysis of the market, the company and it's 30 day outlook through May.
My current strategy for me is to look for an exit of my 9.5 short position when the stock is between 7.85 and 8.33; then quietly wait for the short squeeze to complete this week. Potential reentry into a SHORT position when the stock retests its 9 and 9.48 R levels. Final exit from my short position at a target range of 6.03 to 6.44. This is not advice to purchase, sell, or acquire equity's in FCX - This is all based upon my analysis of the market, the company and it's 30 day outlook through May.
Note
Well ok then...Looks like I got locked in due to the Short Squeeze happening a day earlier than I thought as notated above. So now it appears the strategy has adjusted to HOLD-BUY-SELL : Hold the current 9.5 short; BUY more 9.5 short positions as cheaply as possible; Sell to close short positions when the stock hits my low target of 6.44.
Trade closed: target reached
ANALYSIS UPDATE:Further analysis of the Futures Copper market indicates extreme weakness with a 30 day BEAR triangle formation indicating further downside for the metal; Hence translating into market weakness in this sector. FCX reiterated at a SELL with a target price of 6.44/share within 30 days.
Today's short HOLD position stable, increased short put position at a discount with expected exit in 20 to 30 days between 6.06/share to 6.44/share.
Market conditions seem to indicate further weakness in Copper. Time to look at (OR), (SAND), (GOLD), (RGLD), (AMD), and (MU) for long entry points once this cycle is complete.
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