Copper Speculation Setting In
Within any bull market, there are surges and setbacks. Metals take turns rising and declining. Stocks take turns running and correcting.
Overall, it means that investors need to move with the ebb and flow to maximize entries and exits.
It’s harder than it sounds. When things are rising, it’s natural to want to jump in. When a stock or a metal steps back after a run, it’s easy to think you missed your chance and it’s now all over.
But if you believe we are in a metals bull market, then buying the dip is one of the best approaches.
Take copper right now. It ran hard from February to March then stepped back. Then it ran hard again from mid-April to mid-May.
Capstone Mining, a mid-tier copper producer, is a good example of how metal price moves like this play out in stocks. Here’s Capstone’s 6-month chart.
The larger gains by CS compared to copper is straight leverage. Capstone produces copper. Its cost to produce are fairly stable, especially over a short timeframe like this. When the price it gets for its product rises significantly against set costs, all those gains become
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