For much of this morning, the major stock indexes were trading lower. One important sector that is declining in lock step is the base- and industrial-metal stocks, a sector that's closely tied to the Chinese economy. China has been the growth engine of the world until last year when its economy began to slow. Which is exactly when the base- and industrial-metal stocks topped out. Often, when the Chinese stock market comes under selling pressure the base and industrial metal stocks will trade lower. Recently, there have been rumors that the Chinese government would begin to stimulate -- inflate -- its economy, however the important Shanghai Index has sold all short-term bounces. The weak China economy has kept the leading base- and industrial-metal stocks somewhat depressed.
One leading base- and industrial-metal stock that is trading lower, today, is Freeport McMoRan Copper & Gold Inc (FCX). Today, FCX stock is declining lower by 0.62 cents to $37.87 a share. Short term traders should watch for intra-day support around the $37.65, and $37.40 levels.
Inverse To U.S. Dollar Index
Remember that all of the base- and industrial-metal stocks will generally trade inverse to the U.S. Dollar Index, therefore, should the dollar decline the base metal stocks could catch a bid. A few other base- and industrial-metal stocks that are also declining, today, include Rio Tinto plc (ADR) (RIO), BHP Billiton Limited (ADR) (BHP), Teck Resources Ltd. (USA) (TCK) and Vale SA (ADR) (VALE).