Comment of the Day
Some of the topics discussed include: breadth improving somewhat, Dollar eases on Fed less hawkish tone, Gold and oil firm, Wall Street continues to rebound, emerging markets primed for outperformance if the Dollar continues to roll over.
Gold and subscriptions
My view - I lost a subscriber today. In our business losing a subscriber is not unusual. Every loss is mourned while gaining a subscriber is always celebrated. Hopefully the latter outweighs the former and, more often than not, it does. Above all we have always prized the dedication of the people who stick with us through thick and thin. For that I simply wish to say thank you.
We have an enormous wealth of experience within the Fuller Treacy Money Subscriber collective. If any of our seasoned investors would like to introduce some younger potential subscribers we would be happy to offer them free trials.
Most successful newsletters have calculated how long a subscriber remains a customer. Then they attempt to maximise revenue from that person by upselling into sequentially more expensive products; while they have the person’s attention. Ultimately, they seek to sell a lifetime subscription. We’ve never done that for better or worse. You get everything in one product: video, audio, commentary, my personal trading details for one price.
I had an email today from a soon to be former subscriber expressing frustration at the fact I do not provide enough analysis and provide too much commentary. He also expressed frustration at the sideways trend in gold. I said in yesterday’s copy that the renewed bull trend in gold will be confirmed by a move above $1850. Until then we are still in a range. I am positioned to benefit from a breakout, and based on my original entry points, my breakeven is $1800. Nothing I say or do will cause a breakout to occur sooner than the market is ready to support it.
PMIs and Earnings Will Ultimately Determine the End of the Correction
Thanks to a subscriber for this report from Morgan Stanley (NYSE:MS) which may be of interest. Here is a section:
My view - There has been a great deal of commentary in the financial media about deteriorating breadth in the stock market and how the average stock has corrected significantly while the mega-caps have supported the stock averages.
Nickel Hits Seven-Year High as Hunt for Battery Metals Heats Up
This article from Bloomberg may be of interest to subscribers. Here is a section:
Nickel rallied to the highest in more than seven years as surging sales of electric vehicles leave carmakers racing to lock in supplies of the critical battery metal.
Prices of the metal jumped as much as 3.4% to $21,500 a ton, the highest since May 2014, as Tesla Inc (NASDAQ:TSLA). moved to secure future supplies from Talon Metals Corp. (TSX:TLO) That added fresh impetus to a rally built on surging sales of electric vehicles, which has also pushed other battery metals including lithium and cobalt sharply higher.
In other major investments in the battery sector, chemicals maker LG Chem also said Tuesday it will spend 500 billion won ($420 million) by 2025 to build a battery materials plant, while BHP Group on Monday said it will pay $100 million to take a stake in an early-stage nickel project in Tanzania.
While the race to secure future supplies is heating up, there are also growing signs of limited spot availability on the London Metal Exchange. Inventories tracked by the bourse fell for a 50th consecutive day on Tuesday, in the longest run of declines since 2000.
“We have so many stories all pointing in the same direction,” Michael Widmer, head of metals research at Bank of America (NYSE:BAC), said by phone from London. “People do realize that there is potentially a tightness in supply going on, and that is taking prices ultimately higher.”
Nickel prices traded 2.8% higher at 12 p.m. local time on the London Metal Exchange, reaching $21,375 a ton. Copper, aluminum and tin all gained.
My view - Nickel contributes to battery energy density but also to combustibility. Tesla may be securing additional nickel supplies and BHP is investing in new production in Tanzania but Tesla is also now selling lithium/iron/phosphate batteries in the USA which are less energy dense but do not need nickel or cobalt.
Eoin's personal portfolio short profit taken
One of the questions subscribers as most often is how to find details of my open traders. To make it easier I will simply repost the latest summary daily until there is a change.
The Chart Seminar 2022
With global vaccination rates rising, the prospect of anti-COVID pills on the horizon and the promise of travel restrictions being dropped, it is time to start thinking about venues for The Chart Seminar in 2022.
Please drop sarah@fullertreacymoney.com a line if you would be interested in attending an event next year, as well as your preferred location.
At present I am looking at a late May date for a London seminar and I am open to other times and locations subject to demand.
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