By InTheMoneyStocks on July 28th, 2010 10:58am Eastern Time
This morning the major market indexes are trading slightly lower. The markets have bounced around 10.0 percent higher in the month of July. However, after such a rally a pause or pullback is common. Yesterday the markets basically finished the session flat and today it seems that we are seeing similar action.
The strength in today's market indexes are the large commodity related stocks. These leading stocks are holding up well today so far. Rarely will we see the market indexes decline sharply when these leading stocks are trading positive. Exxon Mobil Corp (NYSE:XOM) is one of those leading leading stocks that can carry the market on it's back. As we all know Exxon Mobil Corp has the largest market cap in the stock universe. Therefore, when this stock is positive it is likely that the market indexes are as well or at least just slightly negative to flat. Today this energy giant is trading higher by 0.35 cents to $61.17.
Freeport McMoRan Copper & Gold Inc (NYSE:FCX) is also trading higher by 1.16 to $70.93. When this stock trades higher is signals demand for copper which is the leading industrial metal in the market and a sign of economic growth. Therefore, rarely do the markets decline sharply with this stock trading higher.
Cliffs Natural Resources Inc (NYSE:CLF) is also trading higher today by 0.28 cents to $55.55. When this stock climbs higher it shows that the market is inflating. This stock will generally trade up when the U.S. Dollar trades down and that is the case today.
The major market indexes are all basically flat today behaving very similar to yesterday's action. When the leading commodity names are trading higher it is difficult to see a sharp decline in the market. However, should the leading commodity stocks decline and sell off the markets would likely drop sharply. Watch the leaders and today they are holding up well so far.
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