Market Leader Freeport-McMoRan Showing Weakness (DJIA, FCX, BUCY)

The Dow Jones Industrial Average (DJIA) is still holding onto respectable gains, up 49 points, or 0.46%, to 10,884. But Freeport-McMoRan FCX is struggling. Freeport has been one of the market "generals" during the September rally; the best September since 1939. It has led the market as the price of copper has rebounded from is summer lows. The price of copper is closely watched because of its wide uses in construction and electronics and is closely associated with robust growth in China. The theory follows that if copper prices are going up, copper demand is healthy and so is the overall economy. In the last month Freeport shares are up over 21%. Today, they are down 1% to $85.39. Fellow commodity play Bucyrus BUCY, which makes mining equipment for the extraction of such things as coal and copper, is also weak today. Shares are lower by 0.62%. While these are small declines, the fact that these names are lower in a strong tape may be signaling the recent rally is due for a pause or possible correction. Nothing goes up forever, and these names are highly volatile and correct hard. Be careful out there!