Hey There Income Hunters,
We’re in the middle of a seismic shift — and you might not even realize it.
If you were out the past couple of days and looked at daily closes you would think not much happened.
You see, throughout this incredible equity market rally, the indices went up on good news and they went up on bad news …
Until this week, that is.
This week, the market got its first lower-than-expected consumer price index print, and instead of the usual — stocks up and commodities down — the pattern shifted ….
Commodities in general as measured by the Bloomberg Commodities ETF (Ticker: BCOM) are now + 3% so far this week while the S&P 500 is unchanged …
It has been a good week for Power Income and the #IncomeHunters who acted on my recommendations.
How ‘Bout Them Trades?
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- In Monday’s Power Income, I pushed for a bullish play in the SPDR Energy Select Sector ETF (XLE), which held the 200-day moving average and is up almost 4% for the week
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As you can see in the chart below, XLE broke out above the 50 DMA on much higher volume. Plus, it broke above its downtrend resistance …
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- On Tuesday, I suggested making a gold play via Newmont Corporation (Ticker: NEM).
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NEM is a very profitable, high-quality company that throws off triple the dividend of the S&P 500. They are coming off a bullish doji candlestick pattern and, as you can see, may just be getting started …
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- I saved the best for last, with Freeport-McMoran Inc. (Ticker:FCX), and listed the many reasons why I believe copper will resume its uptrend and why FCX offers you leverage on the copper rally.
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Again, as you will see this is just the start of a major resumption of the long-term bull market for the natural resource providers …
Breakouts on above-average volume provide tremendous wind for your sails.
Now think about the seismic allocation change that we will see throughout 2022 …
We are talking about $17 trillion sitting in stocks while there is only $1.7 trillion the total market cap for all commodities and energy producers combined.
So, just a 10% shift out of equities will move the prices of commodities and energy much, much higher.
Bring It Home
Since the beginning of the year I have been saying things will change in Q3.
Now it is happening …
The Fed and our government have no choice but to keep spending. Europe, meanwhile, is bribing consumers with tons of incentives to buy electric vehicles, and it is working …
Email me to get access to Griff’s Picks today — including my best play for the week ahead.
I hope to see you there and as always …
Live and Trade With Passion MY Friends,
Griff