Commodities on fire - bullish gold and hogs
I've put together a video on my views on Gold and Silver on YouTube and why we could be seeing the start of a new bull market. My view centres on the decoupling we’ve seen between Gold and US real rates and how the investment community are using Gold as a hedge against a central bank pivot, driven by the notion of a policy mistake.
We’ve seen some big moves in AG’s and soft commodities too and I have an eye on coffee and hogs – lean hogs could be starting something beautiful. I know this isn’t a market that comes onto everyone’s radar too often, but for trend-followers or momentum players, when this goes it can go and will often be traded by CTAs (systematic trend followers).
Lean hogs - Daily chart
(Source: TradingVIew - Past performance is not indicative of future performance.)
Take a look at the daily, where we’ve seen price close above the 4-month range highs and while there's always a risk of a fake-out, if this goes it could trend strongly. As with any trade, if we do see a failed break this could be powerful, so I’ll close on this development - when I lose, I want to lose small.
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