Freeport-McMoran (NYSE:FCX) is largely dependent on the price of copper as to its success, and the news today that Europe allegedly had improvement in their industrial sector last month added more to the confusion if copper prices than helped it.
As a result, puts and calls were made on both side of the trader aisle, reflecting the uncertainty of the copper market.
Conflicting news and data are behind the uncertainty, as the sovereign debt crisis in Europe threatens the stability of the region, and yet somehow the industrial sector is said to have improved.
Something obviously isn't right there, and traders know there is some type of dishonesty going on, but aren't sure which way to bet against it.
For those who want to invest in Freeport-McMoran, we need to take the demand side of the equation and forget about the countradictory news which on the one side is fueled by government and mainstream media who want the more positive side of things to be the narrative, rather than the obvious challenges facing the region.
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