First, we noticed a reversal of the transfer above earlier highs in world shares.
Secondly, we noticed that when the USD index began to get better after being badly crushed up and when the sentiment for it was very dangerous (and everybody and their brother saved repeating totally different causes for “de-dollarization”).
The latter is necessary as a result of it exhibits that it isn’t “only a decline from the identical value degree” that makes the present scenario equivalent to that of 2007/2008 and 2022 a high degree.
It may very well be that the tariffs that Donald Trump proposes are included within the value and that world shares fall because of this. In spite of everything, regardless of political causes, that is one thing that’s more likely to be dangerous for worldwide commerce, and most of the world’s economies may very well be affected.
And what occurred in each of the above instances when world shares fell? Mining shares truly plummeted. And this, my associates, is the possible outlook for the approaching months, regardless of the present corrective upturn.
Nonetheless, for now it appears like income from our lengthy positions will rise a bit earlier than we shut them.
Corrections like the present one are helpful not solely as a result of they are often worthwhile, but additionally as a result of they’ll inform you which elements of a specific market or sector are more likely to fall when the following transfer decrease happens.
Copper and broader uncooked supplies
As you already know, I’ve commented on FCX’s bearish potential, and given the dimensions of the rebound proper now, all of those bearish factors stay legitimate.