Two Ways to Play: Chinalco Looks to Copper
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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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