Back on January 10, Mike Paulenoff posted the following bullish chart commentary on XME (SPDR S&P Metals & Mining ETF) for MPTrader members:
"Anyone thinking that over the upcoming 3-5 year time horizon that 1) Oil is heading higher, creating pass-through price pressure... 2) inflation will be problematic... 3) Demand for industrial metals will be intense as the globe goes "green" ... 4) and the demand for these metals will cause shortages that put even more upward pressure on prices... should consider parking some funds in XME."
Mike added, "Technically, the 10-year Weekly Chart setup certainly indicates enormous upside potential as long as XME holds above 39 on any acute bout of selling pressure."
XME was trading at 45.48 at the time. This past week the ETF climbed to a 10-year high at 50.78, nearly 12% above Mike's initial heads-up to MPTrader members.
In the interim 5 weeks, the industrial and precious metals complex has derived buying interest from a "perfect storm" of underlying fundamental factors, such as inflationary data points, a Fed that professes to be shifting into tightening mode while still adding liquidity to the banking system, greatly heightened geopolitical risks emanating from the Russan-Ukraine crisis, and a Canadian political crackdown that US citizens would consider a declaration of Marshal Law that forces individuals to seek the "safety" of real assets in general, precious metals in particular.
XME is benefitting from the fundamental backdrop, which underpins a very powerful, multi-year upside technical breakout that projects considerably higher prices in the months ahead.
Where are the twists and turns ahead for XME?
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On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.
On September 28, 2023, with NVDA trading at 429.31, I told MPTrader members that my work is warning me about a complex technical setup that argues for a prolonged corrective scenario prior to a resumption of dominant uptrend strength. I posted the following:My near-term pattern and momentum work argue that since its 9/21/23 corrective low at 409.