[FCX] update

In the backlink I provided the model below.



The above channel had an error, it should not start higher than the B of 1 wave.  It is corrected below.  So today we threw over that top rail and then pulled back.  It If you did not sell the test of that blue resistance horizontal (see bottom chart to know where it came from) then if we kiss the upper rail from below tomorrow AM but cannot break out then I would be headed for the door because this thing has doubled over the past 1+ months and so even if this is a motive first wave (leading expanded diagonal AKA wizard's sleeve) then the pullback is likely to be fierce.  These often give it all back up or turn into an inclining double bottom.

Again, after such a run you have to give the market respect.

By the way, if we do get the action below, consider shorting this because the short term gains can be significant and the stop loss point is obvious.  Anything higher than blue 5 (or of the back test of the top rail is reason to cover.  So, wait until this back tests (if that is what it is going to do) and wait to see if the top rail can hold as resistance, and if it does and then hits a lower low than today's low then this becomes and easy short with obvious stops.




We are now at the $hit or get off the pot point for commodities because we are now at 3 waves up off the deck in FCX.  The chart below makes it so clear.  The momo crowd has been laying back so far but if this breaks out to a higher high then odds fall rapidly that this whole move was nothing more than a 3 wave sucker's rally to the level of the prior 4th.

The proper play here was to sell into resistance and then buy the breakout if it occurs.