A U.S. Dollar Top?
Add FCX Calls
PLAY: Buy the FCX February 70 Calls (O:FCX 10B70.00) at or under $3.85 (or best price) good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.50.
Dear Bottarelli Research Member,
As you can see from the U.S. dollar chart below, the buck has been engaged in a rather strong (and surprising) upside trend. But now, I’m getting the sense that this temporary up-move has become exhausted. Since the chart below is an end-of-day chart, you don’t see today’s price tick, which is a red candlestick. In other words, the debt concerns over in Greece (and other PIIG nations) caused a rush of investment activity back into the U.S. dollar, which just might have pushed the buck up to a short-term top. Going forward, a pullback is certainly in the cards.
As you know, this recent dollar rally has crushed gold prices, opening up an opportunity for us to play Freeport-McMoRan Copper & Gold (FCX – NYSE). As you can see below, Friday’s bounce off the 200-day moving average, followed up by gold’s $17.00 up-move today, could spark more strength in FCX. In fact, a quick move to $75.00 (or above) is certainly in the cards. Let’s get positioned to play this short term bounce using February calls now!
PLAY: Buy the FCX February 70 Calls (O:FCX 10B70.00) at or under $3.85 (or best price) good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.50.
And as always…
Lock and load!
Sincerely,
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