Come and Get Me, Copper

To piggyback my earlier blog post, within the materials complex we of course have the copper plays acting much better today. 

Freeport (FCX) is a widely-known name, but as one of our Members noted we also must keep tabs on the likes of SCCO and even HBM, two under-the-radar copper plays sporting sound technical patterns on daily timeframes and threatening to emerge with the XME sector today (JJC is the copper ETN). 

Naturally, the Fed Minutes, which are set to be released at the bottom of the hour, may impact the rallies today throughout the materials complex. But the issue is not so much that they are bouncing this morning; rather that they are moving higher up and out of recent, tight basing action. 

That technical circumstance lends itself to a more enticing setup for longs, albeit in the face of Fed and/or U.S. Dollar risks. 

Moreover, as I write this I see the IWM slipping and dragging down some of the larger indices with it, which compels me to stay hedged with some bearish bets in the event the IWM daily chart bear flag comes to fruition. 

Still, we have seen prior instances where materials can rally even as the broad market struggles. Thus, I am watching not just copper but the entire XME to see how they handle the inevitable swings later today.