From the Desk of Ian Culley @IanCulley

Precious metal charts aren't painting a bullish picture for investors.

Silver is underperforming gold. The Gold Miners ETF $GDX is posting new all-time lows versus the broader market. And everywhere you look, individual gold mining stocks are breaking down.

Well, not all mining stocks. One chart continues to fly high…

From the Desk of Ian Culley @IanCulley

Precious metal charts aren’t painting a bullish picture for investors.

Silver is underperforming gold. The Gold Miners ETF $GDX is posting new all-time lows versus the broader market. And everywhere you look, individual gold mining stocks are breaking down.

Well, not all mining stocks. One chart continues to fly high…

Check out Buenaventura S.A.A. $BVN:

BVN has gained over 70% since bouncing off last month’s lows, slicing through our initial and secondary targets. 

From the Desk of Ian Culley @IanCulley

Stocks aren’t the only assets catching a bid.

Commodities are, too. 

Despite their current rallies, the average investor isn’t concerned with cocoa, cotton, and lean hog futures. 

I get it… What do lean hog futures have to do with Tesla $TSLA?

But Dr. Copper – with its Ph.D. in economics – is ripping higher this week. 

And crude oil is trading above our risk level outlined last month.

Check out crude oil futures slicing through the 75 level:

From the Desk of Ian Culley @IanCulley

First, gold failed to hold its breakout to new all-time highs.

Then, the silver-to-gold ratio undercut a critical shelf of former lows.

Now, the Gold Miners ETF $GDX is printing a new all-time low versus the broader market!

Is there any sane reason to bet on the miners right now?

Let’s take a look…

Check out GDX relative to the S&P 500 ETF $SPY: 

From the Desk of Ian Culley @IanCulley

First, gold failed to hold its breakout to new all-time highs.

Then, the silver-to-gold ratio undercut a critical shelf of former lows.

Now, the Gold Miners ETF $GDX is printing a new all-time low versus the broader market!

Is there any sane reason to bet on the miners right now?

Let’s take a look…

From the Desk of Ian Culley @IanCulley

Houthi rebels are rampaging in the Red Sea.

The result: Many carriers are taking the scenic route around the Cape of Good Hope in South Africa instead of the Suez Canal. 

The longer route brings weeks-long delays and increased costs as the price to ship a 40-foot-long container has nearly doubled since late November.

It won’t be long before those additional charges trickle down to us, the consumer.

What are you going to do?

Buy marine shipping stocks!

Check out our custom equal-weight marine shipping index posting fresh eight-year highs:

From the Desk of Ian Culley @IanCulley

The US dollar is marching higher, stomping gold mining stocks into dust.

Harmony $HMY, Kinross $KGC, and Eldorado Gold $EGO are hovering just above last month's breakout levels.

And Franco Nevada $FNV –  a secular leader among royalty companies – is sliding toward fresh multi-year lows!

From the Desk of Ian Culley @IanCulley

The US dollar is marching higher, stomping gold mining stocks into dust.

Harmony $HMY, Kinross $KGC, and Eldorado Gold $EGO are hovering just above last month’s breakout levels.

And Franco Nevada $FNV –  a secular leader among royalty companies – is sliding toward fresh multi-year lows!

Check out FNV undercutting a shelf of former lows:

I’m not crazy about shorting it. But you can’t own FNV below its 2022 lows at approximately 110.

From the Desk of Ian Culley @IanCulley

Danger Will Robinson, Danger!

Cocoa futures have violated a parabolic trendline. 

And it may not be safe for bulls to hold their long positions…

Cocoa fell -2.50% on Monday, cementing last week’s trendline break.

Commodity markets tend to experience steep selloffs following dramatic rallies. Escalator up, elevator down.  

From the Desk of Ian Culley @IanCulley

A risk-off tone is blanketing the precious metal space as a key data point suggests more pain ahead…

Silver is underperforming gold.

From the Desk of Ian Culley @IanCulley

A risk-off tone is blanketing the precious metal space as a key data point suggests more pain ahead…

Silver is underperforming gold.

Check out silver undercutting a shelf of former lows relative to gold:

The breakdown signals a lack of interest or risk-seeking behavior in the higher-beta vehicle.

When silver fails to catch a relative bid, the entire precious metals space tends to follow. 

From the Desk of Ian Culley @IanCulley

What goes up must come down.

It’s an old commodity market maxim that never fails to deliver. The cattle, sugar, and OJ markets embodied this truth last year. 

But as the calendar flips to 2024, it’s time to track those markets that failed to launch in 2023.

Here are three of my favorites…

Coffee

Unlike other softs such as cocoa and sugar, coffee failed to produce monster gains last year. 

But it’s now attempting to carve out a multi-year double bottom: