Now, base and industrial metals are starting to join the party.
This is the next phase of a broader commodity supercycle, where the “junkier” stuff outperforms.
Products like rare earths, lithium, cobalt, and nickel should all start trending higher soon.
Green Shoots in the ASC Green Revolution Index 📊
Our Green Revolution Index holds an equal-weight basket of rare earth metals (via $REMX), lithium stocks ($LIT), and futures contracts for Copper, Cobalt, and Nickel.
This index surged over 200% from its 2020 low into the 2022 peak, but has been in a brutal bear market ever since.
The good news? That downtrend has now been broken.
We’re seeing signs of stabilization and base-building, with the bulls defending support over and over again.
The key level we’re watching is the 61.8% retracement of the prior bull market, around 379.
If and when we get a breakout above that level, this sets the stage for a full-fledged reversal toward the next Fibonacci retracement at 490.
That also means we'd see a brand-new uptrend for the entire Green Revolution theme.
We're closely monitoring this key intermarket ratio 👀
This ratio chart of Lithium vs. Commodities ($LIT / $DBC) highlights a crucial intermarket story.
The Lithium trade has been under pressure for over two years now.
However, it's now sitting on a significant level of interest that dates back to 2011. It has acted as both resistance and support multiple times, and it’s doing so again right now.
This doesn’t confirm a new uptrend yet. But what it does suggest is that the bleeding has stopped.
The trend is no longer down - it’s sideways. That opens the door for the next leg to be higher.
We’re not saying the Green Revolution trade is ready to explode tomorrow. But we are saying the groundwork is in place.
The technicals are improving, and rotation is spreading.
If this really is the next leg in the commodity bull cycle, then these “junk metals” are about to become the market’s most valuable treasures.
