Equities continued to climb, the SPX breaking a new hist’ high of 6290, and settling +17pts (0.3%) to 6280. Copper settled +14cents (2.6%) to $5.58
sp’weekly1b
Copper, daily
Summary
SPX: as things are, we’re net higher for the week by +1pt. Weekly momentum is on the very high side. Upper bollinger has climbed to 6400, as looks realistic within 3-4 weeks.
Copper: price action was more stable. RSI 69s… borderline overbought. Even some cooling to the low $5s wouldn’t negate what has already been a very bullish month. The only issue is when the $6s are printed… and then onward to the $7s. Key stocks: FCX, TECK, SCCO
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Looking ahead
Friday will see the US T-budget (2pm)
Earnings: none
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Final note
I’ll start… by highlighting myself… highlighting the Dimon of JPM
Yours truly isn’t the only one who is looking for rate hikes… rather than cuts. Dimon came out a year ago, noting the US 10yr could hit 7.00%, a level that I continue to expect.
Even if the Fed is stupid enough to cut rates July 30th and/or Sept’17th, I have to expect them to re-raise as inflation picks up… or simply due to the bond market kicking Trump’s ass for gross over-spending, and flooding the market with trillions of new issuance.
September/Oct’ would be a prime time to see the US 10yr break above 5.00%. If correct, equities will have to be re-priced… at least briefly.
I would merely add… higher rates are inherently bullish equities, especially for the financials. So long as the climb in yields is not too fast, equities should be net higher on a mid/long term basis.
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The CEO of Agnico Eagle !
AEM has had a very powerful run from the 2022 $34s to the recent $126s. The stock has been the sector leader for over a year. Valid alts: NEM, B. Monthly RSI 78s is overbought, and the cautious will at least have tight stops, as it could easily cool back to the monthly 10MA… currently $101s.
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More gold chatter… with guest Cavatoni of the world gold council.
L/t bullish silver. Along with an increasing number of others, I wonder if Trump wants to also threaten a tariff on silver. I’d consider it unlikely, but still, gods help anyone crazy enough to be short silver (or gold!).
*for now, the tariff on copper is merely a threat.
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Bullish nuclear into the 2030s. Key stocks: LEU, SMR, NNE, OKLO, and related miners… CCJ, UEC
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The Carlson and guest Robinson on the Chicoms… who remain a cancer on this planet. My hope is that India (despite its flaws) can take the global lead, not least in Nuclear energy… via Thorium.
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Dore on Trump and Epstein. I’d dare anyone to argue against this, as the very notion of trying to brush this issue away… is morally contemptible.
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Some of it I agree with… but lets be clear…
The notion that ICE are being heavy handed, or even analogous to NAZI-Gestapo is just stupid. The USA has millions… perhaps 40-50M, who broke in, and generally work outside of the system. None of them belong, and should be kicked the hell out.
Trump’s notion of amnesty for select industries – namely, agri’ and hospitality, is equally stupid. Either you believe in a secure border… or you don’t. There should be no compromises on this fundamental issue.
Goodnight from London