We have noted the varying degrees of bullishness among the critical commodities (more and more commodities, especially minerals, are now “critical” or strategic) amid the global trade mess. While we have our projected window (March 1st at the latest) established for an anticipated broad market correction that would include commodities, precious metals and US/Global stocks alike, within that window there are still some upside candidates (although buying much of anything is riskier now).
Insofar as one might want more Uranium exposure (I’m only holding CCJ), the actual commodity holder looks like it could target a new high before a pervasive correction ensues. The u3o8 holder (SRUUF) slammed support at 13 and has rallied to put in the right side of a bullish pattern.
Today it is right at key resistance. A successful (i.e. a non-headfake) move that takes out the neckline would measure to a new high and the 27 area. Not bad upside if it were to play out. I wonder if something like this could happen in conjunction with the closing of the broad rally window.
I am by the way, tightening my bull view expiration to mid-February or sooner for safety sake. Not the March 1st PDAC inspired date, or Au & Ag seasonals (both per NFTRH 897). Recall that the broad stock market (SPX) seasonal starts to erode in mid-February. A correction in commodities, resources and precious metals could start before or after that. But with what’s going on today I am reminded not to be too greedy.
With Trump in the headlines again, the hype (some Fox News cartoon character is criminally investigating Powell) is a daily occurrence. It is driving FOMO, and I wonder how much FOMO power there is out there waiting to, well, FOMO. Whatever it is, I expect it to be the final FOMO before a multi-month broad correction.
Isn’t it interesting how the big guns (former Fed chairs, banking elite and former SecTreas, a prominent republican senator, and economists) are out in force defending the Fed’s independence. Man, if Trump breaks the Fed and makes it his hand puppet, it will be nearly impossible to quantify the future inflationary damage. Luckily, the real PTB will not allow it.
I’d be all for abolishing the Fed. But all-against turning it into some maniac’s hand puppet.
Okay, this update about Uranium veered a little. :-)
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
