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Two Ways to Play: Chinalco Looks to Copper


Strengthen your portfolio in good times and bad.


Chinalco Looks to Copper

Aluminum Corp of China, better known as Chinalco, is studying the copper market to identify the best investment opportunities, so says the state-owned mining company's vice president, Lu Youqing.

In a report by the Daily Telegraph, Lu said Canadian copper-gold miner Ivanhoe Mines (IVN) was a potential target but he declined to comment on what kind of money Chinalco would put to work.

The company also announced yesterday that it posted a profit for the second half of the year, compared to a loss in the first half of 2009. In addition, Chinalco revealed that capacity utilization at its aluminum operations rose above 90%, while production costs fell 17% over the year.

From the Bull Pen: This is a good sign for copper bulls. Look to Southern Copper (PCU). Patience may be rewarded as a buying opportunity may fast be approaching. PCU near the 200-DMA ($27.61) may be such an opportunity. If and when.

From the Bear Cave: On the other hand, if you believe stocks have more downside ahead, Freeport McMoRan (FCX) breaking the uptrend may be one to consider. A buy stop can be set 2% above entry.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei -1.78%, India (closed), Hang Seng -2.38%, Shanghai -2.43%, and Taiwan -3.48%.

Across the pond, we see the FTSE -0.50%, CAC -0.54%, DAX -0.33%

As of 8:10 AM EST, S&P Futures are trading +7.50 to 1098.25. Nasdaq futures are +6.50 to 1804.25.

A Look at Commodities

Over in commodities, crude oil is -0.69 to 74.57 while gold is -4.000 to 1091.70 this morning. Silver is -0.295 to 16.850 and copper -0.0400 to 3.3530.

The dollar Index is +0.3050 to 78.6550.

On the Radar


09:00 Case-Shiller 20 City Index -5.20% cons.
10:00 Consumer Confidence 52.9 cons.
10:00 FHFA Home Price Index

Click here for the full trading radar.

Good luck today!

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No positions in stocks mentioned.

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