I am of the opinion it can “Pay To Be Picky” when looking at leadership stocks/ETF’s in the Basic Materials arena.
The chart below was shared with Premium Members 10 days ago, reflecting that…An Extremely bearish single day pattern had taken place in Freeport McMoran (FCX) and Basic Materials (IYM).
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FCX created one of the largest bearish upside wicks on 1/26, that I have seen in years! One day DOES NOT MAKE TREND for sure…when you see this ugly of a single day pattern at resistance, it can “Pay to be Picky!”
3 days ago I shared that investors might want to view FCX as a headliner stock, due to it leadership role in the past, that it was up 35% and facing key resistance line (see post here). Below is an update to the above chart…
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I know I am getting “Rather Picky” on single day patterns…when single day patterns are pretty ugly, sometimes it can pay to be very micro/picky!
What is happening today DOES NOT prove a new trend is at hand, yet it does increase the odds that the ugly/large bearish wicks at (1) could be sending an important message.
