Some Long Term Plays....
This week I want to point out to you the likelihood of this beaten down sector making a bit of a comeback. When I look at a trade I want to see the greatest reward to the smallest possible risk. Much the same as fund managers do.
Grains are at a level that seems to fulfill all my criteria for a long term ride. They seem to be making a surge at the moment. Not that a lot has changed fundamentally but supplies are at a point where they are not keeping up with demand. The world still needs to eat right. It still needs food. We know this as fact. With the Dollar gyrating around a top and moving down we may get a bit of a bull in commodities. The time would be right IF and I repeat that the Dollar moves down.
I think that there is an opportunity here if one wants to be quite patient with their positions. I don't really know the time frame as the markets have been quite quiet for a few years. They are cyclical right so one might extrapolate that in the beginning things might be slow. However one could have said that about crypto currencies too before they took off. Obviously NOW is NOT the time to be chasing these highly speculative plays. The time to do that was of course before everyone became interested.
Why do they become interested?
They see quick riches and they get to read about the few people that invested when there was no interest and held for a number of years. Most people will fail miserably at the Crypto market because you can't predict when or even if that will happen. You are far wiser to invest in block chain technology itself rather than risking a bet on whether you will pocket 1000% or more returns. Could they go higher? Sure. However the time to get on board is when no one is looking. When everyone is looking then the advantage is gone.
Right now there are a few areas that no one is looking at. These are the ones that hold the most promise. Consequently that is why I have directed you to look at grains.
I made 700% off of Silver in 2006 to 2010. I made out very well in gold when its time had come. Both these two precious metals may move a bit higher as in around 22 for Silver and 1579 for gold but don't look for a repeat of the bull of 2001 to 2011. It is not going to happen. You can see my levels for the charts below and where I think price is headed. You can see the limited downside risk so look for any pull back to enter. Risk management is of course important and we can look to add to our positions versus adding to the losers. Just use my levels as a guide and I will guide you.
Grains are at a level that seems to fulfill all my criteria for a long term ride. They seem to be making a surge at the moment. Not that a lot has changed fundamentally but supplies are at a point where they are not keeping up with demand. The world still needs to eat right. It still needs food. We know this as fact. With the Dollar gyrating around a top and moving down we may get a bit of a bull in commodities. The time would be right IF and I repeat that the Dollar moves down.
I think that there is an opportunity here if one wants to be quite patient with their positions. I don't really know the time frame as the markets have been quite quiet for a few years. They are cyclical right so one might extrapolate that in the beginning things might be slow. However one could have said that about crypto currencies too before they took off. Obviously NOW is NOT the time to be chasing these highly speculative plays. The time to do that was of course before everyone became interested.
Why do they become interested?
They see quick riches and they get to read about the few people that invested when there was no interest and held for a number of years. Most people will fail miserably at the Crypto market because you can't predict when or even if that will happen. You are far wiser to invest in block chain technology itself rather than risking a bet on whether you will pocket 1000% or more returns. Could they go higher? Sure. However the time to get on board is when no one is looking. When everyone is looking then the advantage is gone.
Right now there are a few areas that no one is looking at. These are the ones that hold the most promise. Consequently that is why I have directed you to look at grains.
I made 700% off of Silver in 2006 to 2010. I made out very well in gold when its time had come. Both these two precious metals may move a bit higher as in around 22 for Silver and 1579 for gold but don't look for a repeat of the bull of 2001 to 2011. It is not going to happen. You can see my levels for the charts below and where I think price is headed. You can see the limited downside risk so look for any pull back to enter. Risk management is of course important and we can look to add to our positions versus adding to the losers. Just use my levels as a guide and I will guide you.
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