Want to know what we were doing? Check $ARCB $FCX and $TSLA (December 27, 2021)FCX TECK ARCB TSLA
I want to talk about Freeport ( NYSE: FCX ) today. I put Freeport ( NYSE: FCX ) on our Active Trade List today. It’s not the best entry but a good enough one to make money.
I started looking at the daily chart, which I will get back to in a second, but then I am looking at the weekly chart. And what I saw I really liked because this is actually, you can break it down on the daily chart more, but this is actually the first real bonafide base on a stock that has had a heck of a run from the bottom to the top, over 700 percent, that’s a pretty big monster move.
I like this, I think it’s a healthy consolidation staying above its 40-week or 200-day moving average, squeezing a bit. And so I don’t feel like I am buying this high, not on the weekly chart. Yes, it would have been nice to buy it close to $30.00, but it would have also been nice to have bought about 100 Bitcoin about 10-years ago, but I didn’t do that either.
And so I am looking at this right now and I like the way it is trading. I think the inflation picture is good if you are going to make money on inflation, which Freeport ( NYSE: FCX ) does. And so we put this on the list because this squeeze, with a fairly loose stop on the position
Another thing, that I like is Teck ( NYSE: TECK ). Teck Resources ( NYSE: TECK ) isn’t quite as enticing as Freeport ( NYSE: FCX ) is. But if Freeport ( NYSE: FCX ) continues to move up, then I think you are going to see Teck Resources ( NYSE: TECK ) do the same. So these are 2 stocks that I really like. Obviously, I like Freeport ( NYSE: FCX ) more because we took a position in that.
While I’m at it I will tell you this, also took a position in ArcBest ( NASDAQ: ARCB ). One of our venerated traders in the forum had mentioned this, this morning, on a breakout. I hadn’t been watching this stock and so we put this on as an active trade as well. And the cool thing is, even though there are still 3 hours to go in the trading day, this stock is up well over its average daily volume, so this is a stock that I really like as well.
The daily chart shows it a little different than Freeport ( NYSE: FCX ) in that you have one base here, I guess you could say a tiny base there, then you have got this big correction here, which kind of starts the base count all over again. And so this is, after a big correction of about 80 percent from above 90.00 down to just above 50.00. After that big correction, now we’ve just got this little base here that we are starting to see a breakout on and it’s in the right sector, it’s in the right sector, it’s in trucking, transportation.
Now, I like the transportation sector, stuff, not people. People transports aren’t really working that well unless you look at RVs, that’s what everybody is doing rather than going someplace they are driving someplace. That is what I would like to do but when I talk to my wife about it she says she is very supportive and says, “Well, I want you to have a good time,” so I can’t do that. I like the way ArcBest ( NASDAQ: ARCB ) is trading here, I think it goes higher. We had a nice entry on it so that is kind of what we are doing today.
I placed a bullish trade on Tesla ( NASDAQ: TSLA ). It had gone up so much but I really think she’s moving further, up to 1250.00 would be my bet, probably not by the end of the year. But for crying out loud, with this stock you never know, nobody is going to be selling it before the end of the year. Why pay taxes on that? I think you are going to continue to get a lift here.
What I did was, I bought some options and sold some options, diagonal spread. Bought February calls and sold January calls at a higher strike. And so even if the stock blasts through this I am going to make pretty good money, 33 percent. If the stock does what I think it’s going to do I am going to make more than that.