Metal And Mining Stocks Are In Play
Nicholas Santiago | Feb 28, 2012 01:14AM ET
The leading base metal and mining stocks all started the day declining at the open. This is common to see when the U.S. Dollar Index is strong before the opening bell. Leading stocks such as Freeport McMoRan Copper & Gold Inc (NYSE:FCX), BHP Billiton Ltd (NYSE:BHP), Southern Copper Corp (NYSE:SCCO), and Vale SA (NYSE:VALE) will usually trade inverse to the U.S. Dollar. These stocks have rebounded off of their morning lows as soon as the U.S. Dollar Index declined. Nearly everyday that the U.S. Dollar Index starts strong it will fade or sell off once the opening bell rings at the New York Stock Exchange.
Traders can watch for intra-day support on the U.S. Dollar Index around the $78.50 level. Should the U.S. Dollar Index catch a bid and trade higher the leading metal and mining stocks will likely come under some selling pressure.
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