I was stalking FCX (or IWM) this morning (both on my short list of tickers for day trading) – Friday (Monthly expiration today) for a quick scalp. OR – potentially one of my long candidates – FB / QQQ – depending on the overall market… The market overall seemed lackluster this morning – and FCX was struggling as many in this group.
Much like the entire metals & miners group – it is in it’s first flag off the (POTENTIAL) bottoming pattern – but a bit ahead of some of its peers. We’ll watch several of these as they get into and through their first flags.
So why did I short the FCX – a quick look at the 5 min charts of both IWM and FCX side by side should clarify this. FCX looked ready to fall – IWM looked like a retracement (off the 8 back to the 8).
I entered a quick short on FCX because of it’s proximity to the 13 strike – just OTM at entry… VS – the distance off the 8 to the next strike for IWM and where the “back to the 8” would occur… No guarantees in trading – but glancing across the metals and miners groups all trying to flag (take a breather) – I believed my odds were better with FCX….
While I’m not trying to short the GDX or it’s group of miners – I prefer NOT to counter-trend trade a strong reversal pattern in process…. I simply found the FCX 60 / 30 / 15 / 5 min charts compelling this morning – with the market conditions and the proximity to a great entry… And my intention was only for a quick trade.
I intend to keep watching and trading this group… But please note that the IWM short – off the 8 – back to the 8 was also a viable trade… I just believed the EASIER trade to take was FCX…this morning!
- You must be logged in to reply to this topic.