Sean Brodrick – Despite Pullbacks In Oil, Uranium, Copper, Silver, and Gold – The Megatrends Are Still In Place
Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins us to review the downturn the last few weeks in the commodities like oil, nat gas, uranium, copper, silver, and gold, and their related resource stocks, but he reiterates that the larger megatrends are still well in place.
He acknowledges that some of the moves lower don’t make a lot of sense based on the macroeconomic news, but believes these pullbacks will find support and that those will be good buying opportunities. In the bigger picture we discuss that the commodities supercycle, which started just a few years ago, is solidly underway. He is less animated by the earlier stage exploration companies at this point in the cycle, but feels that investors should look to the larger quality names in each sector, which should respond favorably in the next leg higher.
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Oil Prices Fall After API Reports Large Surprise Builds in Crude And Products
By Julianne Geiger – Jun 04, 2024
“On Tuesday, the Department of Energy (DoE) reported that crude oil inventories in the Strategic Petroleum Reserve (SPR) rose by 0.9 million barrels as of May 31. Inventories are now at 340.2 million barrels—the highest level since March of 2023, but still well below the 656 million barrels in inventory in June 2020.”
“Oil prices were trading down ahead of the API data release on Tuesday—a loss that began on Monday as the market uneasily digested what OPEC+ was serving up with its plan to gradually increase production, while extending its voluntary output cuts for some members into 2025.”
NatGas slammed today.
More downside likely.
Recent low at risk.
Looks like we may get a nice correction—-we’re moving into the summer months and for a lot of these stocks we may see a higher trading range established. Regardless, it’ll be another chance to add to existing positions as well as new positions—-we have 18 trading days left in the month. To reach $50 silver, that would be an average of an additional $1.13/day before the end of the month. In fact I would not be surprised if we don’t close lower this month for gold and silver. However, a great time to add especially to those stocks that saw huge volume on this recent move higher.
l might add—-I wouldn’t be suprised if we didn’t see $27.00 silver in this move down before we bottom out.
Impact has had a 2 month correction that has been perfectly normal so far (and is currently 100% above its February low). As a result its risk-reward looks better than those that have hardly corrected at all.
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=3&mn=11&dy=0&id=p90499947465&a=1690043196
Impact quickly collapsed 50% vs EXK but I wouldn’t count on that drop continuing from here…
https://stockcharts.com/h-sc/ui?s=ISVLF%3AEXK&p=D&yr=1&mn=5&dy=0&id=p72316501396&a=1695113706
GDX found support where it should have…
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=0&dy=0&id=p08662506256&a=1685935212
GDXU day setting up a buy…..There will be another trading cycle down after this one bottoms w a relief rally…Those charts have not been modified……
Oil Prices Shed Over 3% As Market Digests OPEC+ Move
Tom Kool – OilPrice.com – Jun 03, 2024
“Brent crude was trading down well over 3% on Monday, marking the first time the global benchmark has been below $80 since February, with the U.S. crude benchmark down over 3.5% following the OPEC+ agreement to start phasing out voluntary cuts in October.”
https://oilprice.com/Energy/Oil-Prices/Oil-Prices-Shed-Over-3-As-Market-Digests-OPEC-Move.html