The Commodity War

When managing money; it is crucial to understand the controlling narrative in the markets at the time. One minute it was Covid then 10 year yields and now inflation/Russia. Commodity volatility is the real driver of markets and there is a developing war on commodities brewing behind the scenes. Currently, commodities are the real currency.

• Just watch the energy index top, then the 2 year needs to come down as well for equities to bid. Still constructive on crytpos after the executive order.

• People are starting to feel poor while having to return to their office cubicles.

• More recession talks than ever (a good thing).

• Energy has topped for now but commodities can still rip much higher

• Based on the executive order, the US wants to be the global leader in digital asset innovation.

• USD is already in a digital leadership position with the largest stablecoins denominated in USD.

• The sauce: RPV, Corn, NVDA, QQQ, SLV, CCJ, EXV6, Cash and Bitcoin

• Bitcoin resistance $43.7k, support $35k

S&P levels that we have been posting for weeks since the trend first broke.

Pretty big top in energy. It would be surprising if USO makes new highs from here.

Bitcoin is trading TIGHT. Still constructive

2YR Wants 2.5% Which is NOT good for equities. Something to watch.

The degenerates loved this breakout in Uranium. Ea$y money

Get used to these ETFs. The commodity trade will be the false “hedge” everyone talks about.

Return always wants its risk payment. This is not investment advice.