As many of you know, I have been watching FCX as a market tell for some time now.  Its’ chart is permanently on my screens as it has been an increasingly important market leader in the past few weeks. Going into today’s session I was watching FCX 96 and SPY 117.60 as my lines in the sand for the market.  Early in the session the SPY bounced off 117.70 and FCX made a higher low on the 60 min chart at 96.30 leading to a powerful up move to 100.

Adam and I were watching this stock in the afternoon looking for good spots to get long for some follow through into the close. (Props to Adam G who kept a very close eye on it).  What was particular about this setup that made this an A++ trade for me was how strong it was off the lows and how tightly to the day’s high it consolidated, showing considerable relative strength to the SPY.   I started getting involved around 2pm building and adding to my position so I would be a strong hand into a breakout above the day’s high.  I started getting long (never having to risk more than .25) near 99.70, adding on the higher lows and the trend line on the 1 and 5 min charts.

I was also able to note a ton of accumulation on the tape here which gave me a lot more conviction in my trade.  Once the stock broke out above 100 I had a nice position and added one more tier.   My targets for this trade were 101.50 or to sell on close.   I calculated my profit targets off the previous measured move.  Having accumulated this position at such favorable prices it was very easy to hold to my target and ended up making a nice chop!

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