The Silent Supercycle: The Trade Hiding in Plain Sight ($DBB)The market loves a shiny object. Right now, that object is Silver ( AMEX:SLV ). Everyone is looking at it. Everyone is talking about it.
But in this game, by the time "everyone" is talking about it, the easy alpha is gone.
I am not interested in chasing a vertical chart. I am interested in Asymmetry. My data suggests the "Smart Money" is quietly positioning for a massive rotation into the backbone of the global economy: Base Metals.
Here is the "Boring" trade that could outperform the "Sexy" trade in 2026.
1️⃣ THE MACRO THESIS:
The "Physical" Crunch 🏗️ Forget the "Inflation Hedge" narrative for a second. Look at the Supply/Demand mechanics.
The Reality: The world is building AI Data Centers and Green Grids at a record pace. These don't run on Gold. They run on Copper .
The Crunch: We are staring down a forecasted refined copper deficit for 2025/2026.
The Trade: Economics 101 says when Demand > Supply, price must adjust.
2️⃣ THE TECHNICAL "COILED SPRING" ( AMEX:DBB )
📈 While Silver was running vertical, Invesco DB Base Metals ( AMEX:DBB ) was doing something much more powerful: Compressing.
Looking at the Monthly Chart above:
The Structure: We just broke out of a massive 3-year consolidation wedge.
The Implication: Consolidation builds energy. The longer the base, the higher the space.
The "Blue Sky": Unlike the crowded Precious Metals trade, DBB has minimal overhead resistance until $27.30 (TP1).
3️⃣ THE PSYCHOLOGY: Retail vs. Pro 🧠
Retail: Buys AMEX:SLV because it went up yesterday. (Chasing Performance).
Pros: Buy AMEX:DBB because the structure says it will go up tomorrow. (Front-running the Rotation).
4️⃣ THE WATCHLIST 📋
AMEX:DBB : The pure basket (Copper, Zinc, Aluminum).
NYSE:FCX : The institutional favorite.
AMEX:COPX : The miner leverage play.
💡 THE VERDICT I’m letting the crowd fight over the Silver scraps at the top of the range. The Asymmetric Bet—where you risk $1 to potentially make $5—is in the Industrial Rotation.
⚠️ RISK CHECK: Commodities are volatile. If a global recession hits, industrial demand vanishes, and this thesis breaks. This is NOT a "Buy Now" signal. It is a "Wake Up" call. Manage your risk.
👇 YOUR MOVE: Are you chasing the shiny stuff, or positioning for the industrial crunch? Let's discuss below.
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Disclaimer: This analysis is for educational purposes only. Trading involves significant risk. Do your own due diligence.
DBB
CHINA FIN MARKETS | Investing in China & AIChina's market resurgence might pose some great opportunities for investors, especially after a long bearish cycle for the global Chinese financial markets.
February 2025 saw a significant shake-up in global markets, with China emerging as a key player driving investor sentiment. The MSCI China Index surged by 11.2% for the month, vastly outperforming the MSCI US Index:
One of the biggest catalysts behind China’s recent rally has been its advancements in Artificial Intelligence (DeepSeekAI being one of the key drivers).
By operating at a fraction of the cost of their US counterparts, such as OpenAI and Meta, DeepSeek's competitive advantage has given China an edge in the AI space, which can be seen in the market confidence.
XIAOMI has been one of the top gainers, largely as they are expanding their market penetration:
Chinese markets in February saw a boost when President Xi Jinping was warmly received by tech industry leaders. A handshake between Xi and Alibaba’s Jack Ma who previously stepped back from the public eye following regulatory crackdowns, was seen as a major gesture of reconciliation between the government and the private sector. This renewed support for private enterprises.
China’s long-term strategy has been paying dividends in high-tech industries. China has increased its global market share in nearly all industries and is outperforming competitors in cost-efficiency, particularly in sectors like copper smelting.
Despite recent gains, China’s stock market has yet to fully recover from its underperformance over the past decade. While the MSCI China Index has risen 34.6% over the past year, long-term returns still lag behind global markets. A US$100 investment in an MSCI World Index tracker in 2010 would have grown to US$480 by early 2024, whereas the same amount invested in an MSCI China Index fund would have only reached US$175.
China’s resurgence has brought a renewed sense of optimism, but investors remain cautious. While AI advancements and low cost of labor have positioned China as a competitive force, historical challenges like regulatory intervention, tariffs and economic instability still loom.
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DBB - Inflation be thy nameLot of "China is falling apart news" sell your metals recently such as:
www.kitco.com
IMO that story isn't going to age well at least in the near term... market buying the bad news. Recent new high on DBB. Copper looking bullish again too. Turns out the world still needs a lot of metal.
Based upon that recent high and bull-flag - DBB hitting $22 = very likely.
Inflation looks like it is ready to ROAR! At least for a bit longer.
Not financial advice.
Commodities giving a heads up??I do track the DBB and DBC on the side, and particularly over the weekly charts. Something I want to highlight is that the charts are beginning to signal something ominous, as the equiy markets are defying gravity.
The DBB (Base Metals ETF) and DBC (Commodity Index Tracking ETF) both need to be bullish as a proxy lead indicator for equities. This is observed in June 2020, after the pandemic onset shock, when both had a system buy signal that set a long term trend.
Given that, it is currently noted that the DBB ETF clocked a lower high, and a system sell signal triggered. The DBC has a double top and a long bearish candle that looks good to break a trend.
So when base metals and overall commodities do not do well, the general market sentiment is either not healthy or not sustainable.
The next few weeks would be critical...
Heads up!
Base Metals: Long term sell opportunity.The Base Metals market is reproducing a pattern that led to its 11.00 Multi Year Monthly Support in 2016. The formation starts with an aggressive channeled rise from the Support, continues with a Head and Shoulders and ends with a structured decline towards the 11.00 Support again.
We appear to be forming the right shoulder of the new H&S pattern so what should follow is a structed decline to 11.00. We are on a long term short on this market.
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ICX-BTC Double Bollinger Bands The Double Bollinger Bands on ICX-BTC pair are now in the neutral zone again. Pay close attention to the price action at the middle BB (blue line in the middle). We will update the post once we see where the trend is going and provide you with a RRR setup. At this moment we are neutral and are waiting for price action on the BTC pair, however if BTC makes a move we will be waiting even longer to figure out where this is going.
A close below the middle BB will suggest that the downtrend is likely to continue. A strong close above the middle BB tells us that we are likely going to reverse the trend or at least touch the 1st or 2nd upper zone of the BB.
Extra info:
Green zone = bullish trend
Blue zone = neutral trend (break up or down this zone might indicate reversal)
Red zone = bearish trend
To be updated!!!








