Copper Surges To All-Time Highs
1. President Trump talking about putting 50% import tax on Copper. This caused price to surge to all-time highs, and it remains there. Will this rally be sold?
Now, there are few things to know: U.S. imports lots of copper.
And, copper isn’t that easily replaceable. Aluminum would be the next replacement, but you can’t just change that right away. I also wonder if aluminum catches a bid.
Where’s the opportunity: the simplest thing would be to look at local miners. But also must consider that miners can’t take advantage of a one-off move. They need consistent trend.
2. From economic data perspective, it is a boring week overall, but some excitement can come with Fed meeting minutes tomorrow and Canadian employment data on Friday.
From noise perspective, there is tons of it.
Next week is going to be busy: we get U.S. and Canadian inflation + U.S. PPI, retail sales, housing data, and consumer sentiment.
3. Even with two “bad” days on the stock market, nothing really seems damaged. In fact, far from it. Indices remain near their all time highs.
As this happens, earnings estimates are still going strong. That’s something worth watching closely I think.
Also, $NVDA now a $4 trillion company. Congratulations, now what?
$TSLA could potentially be setting up for a big move down if you look at the charts. Also, I have been watching a lot of videos about Chinese EVs. They are GOOD!
4. Gold trying to break below the 50-day moving average. But, lets see. In case of more tariff and interest rate related noise, gold could get bought. Plus, watch the U.S. dollar too.
Oil on a bigger scale, it remains in a channel that’s pointing downwards…. And even war with Iran and threats of closing of Hormuz wasn’t able to take it out of that channel. In the near-term, oil can only rally so much. So many forces at play trying to keep it low.
Platinum forming some sort of resistance around $1400. Needs to break above for anymore upside. Potential for double top formation here.
5. Trump media filing for crypto ETF.
A decent close above $110k on bitcoin could cause fireworks.
Canadian housing remains in a dire shape, but don’t tell this to Canadian stock market because its at all-time highs, or the Canadian bank stocks. Also, Bank of Canada rate announcement end of this month, stay tuned for noise around that as well. Likely a cut in my opinion. Unemployment data on Friday will tell more.
Investing 101: if you lose 50%, your investment would have to come up 100% for you to breakeven.