Metal related stocks have provided a nice bounce for those of us who missed out on the recent decline. A prime example is FCX (Freeport McMoran Copper and Gold). The stock broke down below the double top support line on heavy volume, and is now pulling back up with small candles and lower volume. This is a textbook dead cat bounce setup, which puts this stock at the top of my watchlist. Note that this setup is invalidated if the stock pushes past $54.
I can already anticipate receiving an email that reads: What is the difference between this stock and XLE, which you entered on the long side today? To be honest, not a whole heck of a lot. However, while XLE has the chance to bounce above the 200 day MA (since it has not broke below it yet), FCX has clearly broken down, and now the 200 day MA is providing resistance, rather than support.