Hey everybody, it's John Monroe here from Elite Opportunity Pro to wrap up the weekend for you. I'm just going to get right to it here today...
Those of you who know me personally know I don't pull any punches and I'm about as honest as they get, so in an effort to try and get your subscription business, I'm going to give you a few trading/investing ideas today.
Just promise me if they work out, you'll at least try our Elite Opportunity Pro advisory service, which you can learn more about by simply going here: https://www.smallcapnetwork.com/pages/EOP/v1/.
No pressure, it's up to you obviously. However, the last time I gave all of you an individual Company stock, it was iRobot (IRBT) back on February 10th, a day after the stock tanked on what I believed to be a tremendous earnings report. If a picture's worth a thousand words, then you can see here just how prolific the move in IRBT has been since that day.
Basically, the stock just breached $94 to the upside this morning - just shy of a 100% gain since February 10th. If you don't like that then you probably don't like ice cream either.
Although today's trading ideas aren't going to provide those type of returns in just three months, I do believe they'll provide market average beating returns over the next several months. No guarantees, but that's my thinking anyway.
I know the other folks here at the SCN free newsletter have been talking about commodities quite a bit lately, and on a long-term basis I couldn't agree more. We believe certain commodities are going to be a great place to be over the next several years for various reasons I won't get into today.
One of those commodities I think is definitely resurfacing from a bullish technical perspective right now though is copper - and with our currently long Freeport-McMoRan Inc. (FCX) and Global X Copper Miners ETF (COPX), it's entirely possible both of these stocks - and the more industrial precious metal - could start trading substantially higher from current levels.
As you can see in this monthly chart of COPX, the primary ETF tracking the price of copper found its way thrusting above its 3X3 DMA (blue line) for pretty much all of 2016 and into early 2017. Since then, it has pulled back to its 3X3 DMA, but the 3X3 DMA did recently cross the 25X5 DMA (purple line), which can often be an early sign of developing strength.
Additionally, when we drill down into the weekly chart here, you can see the ETF has also found its way back to a key 3/8th's retracement level from last year's low to this year's high, as well as its 50 day moving average (green line).
Basically, we've got a number of solid technical reasons here to suggest a potential reversal in copper from current levels. As a matter of strong opinion, we'd be extremely surprised if copper didn't start trading much better very soon.
As for the technical outlook on Freeport-McMoRan Inc. (FCX), the stock has been beaten and battered, but like I said above, we do like the Company's current valuation metrics. We believe the stock is clearly undervalued around current levels now. And, considering the stock has now found its way down around some key technical levels, we do like the risk/reward here in anticipation of a nice reversal soon.
The bottom line is any developing strength in copper soon should help FCX and COPX soon. No guarantees, but we definitely don't see the demand for copper waning anytime soon - especially with China's ongoing infrastructure growth, and our own infrastructure growth here at home soon.
So there you have it. It's your call, but if you do decide to pick up either of those stocks - and you end up doing well - I'd love to have you become a valued EOP subscriber. By the way, if you made great money on IRBT already, what the heck have you been waiting for!
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Have a nice weekend.