Mining Sector Ideas

[gfp927z]

Bigworld, The stock market seems to be ignoring the election angst / uncertainty for now, and is focused on the economy and inflation. Recent data suggested a slowing economy, but corporate earnings have remained pretty strong, so next up will be the CPI number on Wed. Here are the Timiraos headlines (WSJ) from the last several weeks. He is the Fed's 'designated leaker' to Wall Street, and provides the Fed's guidance / vibe at any given time -


>>> Stubbornly High Rents Prevent Fed From Finishing Inflation Fight
For more than a year, the central bank has expected slowing rent increases to show up in official housing measures. It’s still waiting.<<<

>>> Fed Chair Jerome Powell Projects Optimism, But Inflation Data Are in the Driver’s Seat
Some analysts warn of limits as to how long the central bank can keep interest rate increases off the table.<<<

>>> Fed Says Inflation Progress Has Stalled, Extends Wait-and-See Rate Stance <<<


https://www.wsj.com/news/author/nick-timiraos


In spite of all the unknowns, it seems possible the stock market might remain fairly buoyant through the summer. Just a guess, but it seems logical that Powell & Co will want to keep things on the rosy side to help Biden's re-election. On the other hand, the neocon faction should be wanting a Rep administration, and may work behind the scenes to sabotage the Dems. One potential scenario would be to replace Biden with Hillary, since she's essentially a neocon. But lots of countervailing scenarios, so we'll see what happens.

Looking at the metals, the silver chart is about where the gold chart was just prior to its recent break out. The silver chart pattern is less 'classic', but shows a quasi cup + handle over the last 12 years, combined with more recent inverted head + shoulders since 2020. The resistance level has been around 29 - 29.50, so we'll see if it can get back there for another test. I figure 30 will be the real psychological 'breakthrough' though, so we'll see what happens over the rest of the year. Gold has already made it's key breakthrough, so I figure it might consolidate for a while before the assault on 2500.



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