3 Stocks For The Copper Squeeze (FCX, JJC, SCCO)

Everyone by now knows about the trade who has an 80-90% position in the copper stockpile on the London Metals Exchange. While the identity of the trader is not known at this time, it will eventually come out. In the meantime, I would expect companies like Freeport McMoran FCX, Southern Copper SCCO and the copper ETF JJC to continue to climb sharply higher, as copper prices continue to move higher on this squeeze. A look at this chart shows that all three have high correlation to the price of copper, and in fact, it appears Southern Copper has a higher beta, as it has outperformed FCX recently on the move in copper. As the trader holds on to this position for longer and longer, the higher prices in copper will go. Ultimately, we will see an unwind in the position, and copper prices will come crashing down back to Earth, but for now, ride the gravy train and run. Disclosure: no position in names mentioned.