SCCO shares made a new 52-week high on Tuesday so let's check out the charts again.
In the updated daily bar of the continuous futures contract of copper, below, I can see a constructive-looking picture. Prices have just moved above the 50-day and 200-day moving average lines. The slope of the 50-day has yet to turn positive.
Copper prices are still well below their February highs but SCCO just made a new 52-week high. What gives? Mining companies tend to lead the movement in the underlying metal. Why? Simple -- If you believe copper (or gold or silver or other metals) is going higher in price but you are not sure when you would buy the unleveraged mining company before buying a leveraged futures contract. With a futures position the timing is key. With the equity position we just remain patient.