This is all happening at a time when commodities are supposed to be strong.
February is one of the best months of the year for commodities:
As you can see, February has historically been an excellent month for owning commodities. The only better month is April, and the difference is marginal.
Will this be another strong February? We think so!
Along those same lines, we're looking for buying opportunities in agricultural commodities, many of which are incredibly beat down and ripe for a squeeze.
Commercial hedgers love buying soybeans at this price:
Over the last decade, 950 has been a significant level of interest for soybean futures.
The commercial hedgers, AKA the "smart money," know how critical this level is, and they've been buying hand over fist.
They've recently built their largest net-long position ever and are in the process of flipping back to a net-short position.
This flip in positioning tends to coincide with price inflection points. We think beans are about to enter a brand-new uptrend.
Here's how we're trading soybean futures:
We're buying soybean futures on strength above 1,070, with a target of 1,142 and 1,258 over the coming 3-6 months.
Today, we're outlining one of the largest cement companies in the world.
Cemex $CX is a $10B Mexican company with operations worldwide. It produces around 87M tonnes of cement each year.
That's a lot of cement! 😵💫
The stock reported earnings on Thursday, and the market rewarded it with the second-best earnings reaction ever. This speaks to the market's optimistic outlook for the company's fundamentals.
Here's how we're trading CX: 👇
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