Yearly Charts Point To A New Bull In Real Assets

“Incorporating percentages or ranges of alternatives into the expression of our beliefs means that our personal narrative no longer hinges on whether we were wrong or right but on how well we incorporate new information to adjust the estimate of how accurate our beliefs are.” ~ Annie Duke, “Thinking in Bets

In this week’s Dirty Dozen [CHART PACK] we look at yearly charts  — I know, I know, the year isn’t over yet but I couldn’t wait… Anywho, we cover major long-term breakouts in emerging markets, bullish setups across Ag, metals, bearish USD crosses, and more…

Let’s dive in.

  1. Let’s start with 2021 analyst targets for the SPX. @ukarlewitz writes that “Strategists expect $spx to gain 9% to 4030 in 2021. No one expects a decline. A month ago, their target was 3900. That’s how this works.”

  1. Here’s the yearly chart of gold (GLD). Would you buy or sell this chart? The answer is pretty obvious to me.

  1. I love long-term charts because they show you how the BIG waves of supply and demand are shaping up. With that in mind, what do you think about this chart of copper (JJC)?

Just for a point of reference, EVs use roughly 6x the amount of copper as ICE vehicles. Meanwhile, copper along with the rest of the commodity space has seen CAPEX slashed over the last 5yrs+.

  1. FX trends tend to last years once they get started. And it’s fair to say the bear trend in the USD (UDN) has begun. Will we see sharp reversals along the way? Of course… I’m keeping an eye on the 18’ low that DXY is approaching… But, I expect USD to trade below 80 within a couple of years’ time.

  1. GBPUSD is one of my favorite DM crosses at the moment. It’s well below its long-term average and now has Brexit largely out of the way (FXB).

  1. AUDUSD is another looker… It was strongly rejected by its 35-year support level (grey area) and is going to benefit from the coming bull market in commodities (FXA).
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Disclaimer: All statements are solely opinions and are for educational purposes only.

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