How far away from AI do you have to be to be safe? The darling sector is staging a rebound but still feels pretty fragile. After the drubbing it took recently it has swung back and is trying to get back to being a market favorite. But traders are starting to move to other pockets of the market to look for the gains they got used to when AI was more like AI. But does that move have to be a full 180?

We have been watching the flow of capital out of this sector and our XLF trade is still in play. But as we scan the charts another ticker has popped up with some interesting developments on the chart. It is much more tangential to the AI trade but has a footing in some safe haven investments that make it a pretty attractive place to look for a smart grab.

Here is what the chart looks like and what we want to see it do next.

FCX is in the precious metals space and while copper has been a huge factor in chip manufacturing, as markets get nuts gold is also a place people turn to as they look to keep money working in a storm. Add to that, FCX has been making advances in new technology to extract copper from above ground supply which could be a huge win.

The chart has comeback recently off a dip but not enough to break the longer term downtrend, yet. With the MACD pretty low and starting to create a bullish crossover move the potential for a reversal is there. It has done this repeatedly so it is fully capable of offering us the move we want. Dec 18 65 calls are at about 2.50 right now. The question is do we get in ahead of the signal confirmation (full crossover, RSI over 50) and take advantage of a lower premium or do we pay a little more when and if the true signal happens?

I am in the watch this for the next couple days camp and see how it behaves. If we get those signals I think this is a quick 1-2 week grab for a nice payout.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily