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Two Ways to Play: Chinalco Looks to Copper

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Strengthen your portfolio in good times and bad.

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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

Economics

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!

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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