The #1 play I believe traders should exploit in this new rate cut cycle
HINT: It’s a mostly overlooked asset
Markets don’t just move on earnings reports or Fed speeches — sometimes it’s a headline out of left field.
Case in point: What just happened with Freeport-McMoRan (FCX).
They had a cave-in at one of their mines in Indonesia tied to a mudslide, and it’s bad.
The company said they don’t expect to get operations back up until mid-2026.
That’s likely to be 8 months or more in a best case scenario. And the hit is huge — they’re projecting a 35% revenue cut. No surprise, the stock dumped hard on the news.
But here’s the thing about commodities: when one big player gets knocked out, the whole supply-demand equation shifts.
Copper rallied on the news because supply suddenly looks tighter.
And guess who benefits? Competitors like Southern Copper (SCCO). Their stock caught a nice bid because if FCX is sidelined, that leaves more room for others to grab market share and sell into higher prices.
This is one of those classic market dynamics I always tell you to watch:
- A negative event for one company — in this case, the cave-in at FCX
- Creates a positive setup for the underlying commodity — here we see copper prices shoot up
- And a sympathy rally for competitors — today, SCCO rallied on the news
That’s why I track these crosscurrents closely. It’s never just one ticker in isolation — it’s about how the dominoes fall across the board.
Stay sharp,
— Geof
