TSO and FCX
Currently, I am holding calls on TSO and FCX. The market is slightly lower today on the heals of a negative GDP report and lingering effects from the housing data. Around noon, the Fed will release its policy decisions and statement and I suspect the market will move into the close. Bullish hopes rest on the Fed tempering some of the hawkish rhetoric from the past months due to the weaker than expected economic data.
I know that much of what is broadcast about the market right now shows fear of a market pullback. As I said last week, it almost feels as if the contrarian play on the market is bullish even with the market setting new highs. In general, stocks are not pulling back significantly. Instead, they seem to be simply consolidating their gains. For me this means small stabs at the bearish side while riding larger positions on the bullish side as I am with TSO and FCX.
TSO has been quite volatile over the past few days. This volatility is nothing new for the stock and will likely continue going forward. The cup and handle chart pattern for TSO suggests a move into the $50+ range in the short term followed by a move into the $60 area over the coming months. Of course, TSO’s earnings report will have a lot to say about the potential move.
In regards to FCX, the play is simply a play on a technical gap from December. It helps that underperforming copper appears ready for an upside breakout which would be much aided by more dovish speak out of the Fed today. I plan to hold FCX with the 7 day moving average though I will evaluate it closer at the end of the day in light of the FED comments.
For now, I am only 2 more doubles away from $100K. I have doubled the account 3 times in the past 3+ months but the hardest doubles remain ahead. They are simply more difficult because the volatility in dollar terms rises significantly.