NEW BULLISH Plays
Ipath Copper ETN - JJC - close: 43.77 change: +0.65
Stop Loss: 41.85
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below
Why We Like It:
If you believe the global economy is slowing down then demand for industrial metals is going to wane. Yet if you look at the trend in shares of the JJC then copper looks like it's on the verge of breaking out higher instead. We think JJC could see a short-term rally toward its October highs. Currently this ETN is fighting with resistance near its 50-dma and the $44.00 level.
I am suggesting a trigger to open bullish positions at $44.25. More aggressive traders could lower their trigger while more conservative traders may want to use a trigger over $44.50 instead.
NOTE: The spreads on the options are pretty wide. That puts option traders at a disadvantage.
Trigger @ 44.25
Suggested Position: buy the JJC (ETF) @ $44.25
- or -
buy the JAN $45 call (JJC1221A45) current ask $2.15
Entry on November xx at $ xx.xx
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 148 thousand
Listed on November 29, 2011