Copper (Cu)
Hey guys, after the sell off in copper stocks, would you be buyers of SFR or WIRE at these levels? When do you think is a good time to establish a position or increase a position?
The Latest Q&A
Answer
Hi Josh,
The simple answer is yes although our ideal entry level (s) haven’t yet been achieved and in hindsight we may have been too pedantic – on Monday, in Shawn’s Trading Ideas we identified a good risk/reward entry level into the Wire ETF at $21.20 Here.
In the ensuing oil triggered panic sell-off the WIRE ETF fell ~4% short of our “buy level” before bouncing aggressively on Tuesday. At this stage we’re viewing the market from two different perspectives:
- MM is already long the Copper thematic across our portfolios hence we will continue to be relatively fussy from a price perspective in terms of increasing our weighting although we would love to at the correct levels.
- If we didn’t already hold a position, we would be accumulating into current weakness in both, leaving room to average if the prices moved lower.
- The vehicle depends on risk appetite – we like SFR, but there is a case for WIRE given greater diversification.
