Tech vs $XOP and $ENPH
...
Say it with me ..
"Oil is headed higher. It's going to drag alternative energy, battery metals, and agriculture with it"
Generational wealth creation opportunity lies ahead folks.
Don't believe the politicians. They don't want war to end. They never have. Antiwar politicians end up dead or unemployed.
What's crazy is I talked with someone today who is a trump supporter...and they genuinely believe that no infrastructure has been destroyed in the Persian Gulf and that the minute the straight is open things will return to normal.
They listen to talk radio and they think oils headed back to $60.
People have no freaking clue.
This is going to hit like a brick to the face.
@observeexecute High oil will generate demand for alternatives via substitution.
High energy prices will create desire to store the expensive energy.
Data Centers need similar metals to batteries...
And now look at how oil played out against tech in the 2021-2022 dollar strengthening period...
$XLK / $XOP
We just had a clean break, support slowed us down, retested the break...and now ..get prepared for this ratio to dump.
$DXY
Notice how the dollar and oil can rally together? 2021-2022...
Right now is not a bad time to have some cash in your portfolio as the dollar sets up this picture on the monthly with tech as overextended as it is. A rush to cash could be afoot...
But this doesn't mean commodities can't perform while it's rising.
The vaccine, I mean, inflation, I mean, peace deal, is 99%, I mean, transitory, i mean, 90%, I mean 70%, woops, 50%, err, 30%, ahhh fuck it just kidding it was all a lie.
HERE WE GO
Iranian state media: Supreme National Security Council has called an emergency session following Israelโs strike on Beirutโs Dahiyeh district.
They promised to strike israel, cancel ceasefire if Israel strikes Beirut.
We may get a strong worded statement and threat, or maybe more, depending on the regimes appetite.
Iran striking israel is not like striking Kuwait. Israel will respond harshly.
$DXY
Notice how the dollar and oil can rally together? 2021-2022...
Right now is not a bad time to have some cash in your portfolio as the dollar sets up this picture on the monthly with tech as overextended as it is. A rush to cash could be afoot...
But this doesn't mean commodities can't perform while it's rising.
Fertilizer vs tech.
You gonna eat those "chips" when food starts getting expensive?
Inflation isn't done. Peep the 70s...it's coming in waves.
Oils not the only thing that's gonna go UP UP UP when people realize supply from the straight is going to be altered for some time
๐คท
$NTR
$MLPNF
$NVDA
$QQQ
$WEAT
@observeexecute You need to research the 15+ reversions of the silver/oil ratio that have occurred in the last 75 years.
In almost every single instance silver falls by about 50% while oil rallies 2-5x.
It's a business cycle.