Is the Great Commodities Comeback Finally Here?
If you know me, you know I’m a commodities guy…
I first got started in the stock market trading commodities, so they hold a special place in my heart.
And rumor has it that we’re seeing a commodities comeback!
Just take a look at the ripping rallies in copper and crude oil… Something is definitely happening.
Recently, I’ve also seen financial media outlets write about another commodity super cycle…
There could be a lot of factors at play here, post-Covid recovery, inflation, the lowered value of the dollar, to name a few…
So, are we in a long term commodities uptrend? To me, it doesn’t really matter!
I’m not in the business of buying stocks and putting them in the drawer… I like to trade fast-moving, ‘lifestyle’ options for quick gains on momentum moves!
Bottom line: whether we’re in a commodity super cycle or not, there will ALWAYS be opportunities in the market!
Keep it In the Money,
Trading Tip of the Day: Simplicity always wins
The best way to book consistent gains in the market is to keep it simple. That’s how I approach the search for all my longer-term trades.
The very first thing you want in a long-term trade is performance. We want to capture the meat of a big move higher. That means we want stability and a solid uptrend.
Let’s say you’ve read about a stock on a financial news site and you’re bullish on its prospects. Take 30 seconds and pull up a simple long-term chart going back at least two years. If the stock is moving “bottom left to top right,” you’re on the right track. No fancy technical analysis required.
Once you’ve found a play you like that’s locked in a strong uptrend, you’re ready to put it on watch. Step two in our trading process is learning when to pull the trigger. After all, buying is the most important part of this whole process.
Don’t blindly throw money at a play just because it’s trending higher. Instead, you should wait for a bounce near a key support level (along a trendline or moving average) before pulling the trigger.
— Greg Guenthner