Commodities (Oil, farmland, precious metals)
Many commodities marked new 52 week highs at the start of 2022 as investors rotated capital out of high valuation companies and into wheat, corn, oil, gold, natural gas…etc. Geopolitical tensions shook up the normal trade prices along with supply, which naturally brought prices higher, adding further to the inflation we’re seeing. Historically, inflation has been hedged by precious metals such as gold and silver, which explains the inverse relation we’re seeing between major indexes like SPX and GLD. We’re placing commodities on watch this week because of the position many tech companies ended last week. Many tech names are at critical support so if they don’t hold. commodity stocks are expected to rise. Here are some names we’re focused on:
GOLD (Barrick's Gold)
Entry: Members only
Stop loss: 24.80
Price target: Members only
Agricultural/Fertilizer:
Tensions between Russia and Ukraine are sharply impacting global access to fertilizer and other agricultural resources, resulting in a spike in price across the world and a major fear of a food crises. This short term fear of rising costs has caused a spike in agriculture and fertilizer companies, these are some of the names we’re focused on:
DE
Entry: Members only
Stop loss: 406.00
Price target: Members only
Consumer Defensive:
The inverted yield curve has brought on a wave of recession fears for Americans so we’ve seen a spike in consumer defensive companies such as the ones listed below. These are companies that sell goods/products which Americans buy regardless of economic conditions because they mostly sell household necessities. Historically many of these companies have always held their grounds in the events of a recession because their profits don’t fall short. Here’s a list of companies that have seen strong bullish action lately and are holding up against the market turmoil:
TSN
Entry: Members only
Stop loss: 91.00
Price target: Members only
Second PT: Members only
Insurance/Financials
The only company we’re watching in this sector is AIG due to recent announcements of their partnership with BlackRock. BlackRock is a behemoth money management company and AIG just gave them access to manage up to $150 billion. This move was a result of AIG’s recent announcement to separate its life and retirement unit’s stock. (Source: Think Advisor).
AIG (Strong technical analysis)
Entry: Members only
Stop loss: 61.00
Price target: Members only
Second PT: Members only