While I wouldn't short the S&P500, I nonetheless would be cautious if I invested in this index, as it has rarely been that expensive, once adjusted for monetary growth. The time might have come to focus on undervalued sectors (such as commodity producers) or countries (like Russia or Singapore), rather than investing passively.
Shorter-term investors might also...
While URA's price remain a bit far from its 50-day moving average, various indicators suggest a positive near-term future for Uranium stocks, due to:
- A positive weekly RSI,
- A momentum turning upward,
- A strong support from the ichimoku line.
As the US 10-year yield has retested the 200-MA acting as a resistance, it is now highly likely to continue to move downward. Indeed, despite inflation fears, the current US deficits wouldn't allow significantly higher yields. Therefore, bonds holder are likely to get negative real yields for a long time. In such a setup, owning long-duration bonds seems to be...
The 10-year UST (nominal) yields seems to have broken on the downside, despite slightly.
If this movement were to continue, then the main winners would be :
- US government bonds: over the short term only.
- Precious metals and stocks in this same sector, which react positively to real yield drops. Indeed, like nominal yields, real 10-year yields dropped from...
Silver, which has been hit this on Thursday, made a comeback right after this quick selloff. This quick recovery might be seen as a confirmation of the bull market in place since last year, as the deep has been bought quite quickly by investors.
This set up seems particularly positive for the months to come, in this reflationary recovery in which silver would play...
Alien metals (UFO) after an 8-month correction seems to be about to turn up again judging by:
- A momentum turning up
- A reverse head and shoulders pattern
- A price above the 50-day and 200-day moving averages
- A positive Ichimoku set up
Knowing that last year's up leg ended up with a multiplication by 30 of its price, before correcting, UFO could this time...
Alien Metals, which is a high beta play on silver, but also other base metals such as iron or copper, seems to be retesting its resistance after a 7-month consolidation.
Given the positive dynamic of precious and base metals, $UFO might reach new highs in the coming semester.
AUN, after a 6-month correction seems to be gaining momentum along with silver.
AUN is, in my opinion, a high beta play for silver bulls who are looking for a potentially high return, at a price of a high volatility.
Disclaimer: I'm long AUN for more than a year.
Silver, after a decade long fall, has entered a positive momentum and now offers a high risk-return trade-off.
Correcting the price of silver for the quantity of money, we can notice that, according to this measure, the last silver peak of 2011 would now be equal to roughly $100.
While this does not indicate whether silver should reach $100 over the medium term,...
BSK, which is a high beta play for anyone wishing to get exposure to uranium stocks, seems to lag the index.
While already been a stock offering a high risk-return tradeoff, this short-term lag offers a good opportunity to enter this market as, if the correlations persists, BSK should soon catch up with its peers.
Uranium stocks, hit by a decade long decline of uranium prices, are now strongly reversing like many other commodities.
While one can use Uranium ETFs to get a long exposure, I prefer junior companies (which offer a better risk-return trade-off in my opinion), such as $BSK.
*Disclaimer: I'm long BSK for more than a year
Despite its recent uptrend, $OIL remains at relatively low prices and keeps a high growth potential, judging by the below oil-to-M2 ratio (Oil corrected for monetary growth), which also shows that an important trend has been broken to the upside.