FCX - Newsletter Writer Says Arizona Mining Stock an Ideal Holding | Benzinga
Source: Michael Ballanger 03/15/2024
Michael Ballanger of GGM Advisory Inc. shares his thoughts on the current state of the market, as well as one stock he believes is an ideal holdings.
Yesterday morning, there was a raft of economic data, including retail sales, producer prices, and initial jobless claims, causing the USD index to move higher along with bond yields and stock futures.
The PPI came in "hot" and retail sales were slightly lower than expected, but the revisions were all over the place, making the government data completely irrelevant as a forecasting tool.
What was surprising was that stocks were rallying. Even the CNBC commentators are aghast that stocks are called higher despite data that will certainly not prompt the Fed to move to lower rates any time soon.
The good news is that both silver and the miners held their gains yesterday morning, and despite the pullback in gold (from overbought conditions and completely normal), it bodes well for the entire metals complex when silver outperforms gold, and the HUI outperforms them both.
The action in silver is nothing unusual, and as I have repeated for over a year, the only way I even glance at silver is after a two-day close above $26.50/ounce, and even then, I will expect only a $3.50 move to test $30.
However, if I get a two-day close above $30, I will go "ALL-IN" with an expectation for sharply higher prices.
That said, I do not believe that silver exceeds $30 until gold gets through $2,300, which implies a plunge in the gold-to-silver ratio (GSR) to 76-77, now at 86.69. If you look back to the March-August post-Covid-Crash period of 2020, the GSR spiked to over 125 before settling down to under 70 by the summer.
Silver was a doggy performer during a massive upthrust in all risk assets, especially the "hard" ones. That is the reason that I am staying with copper and gold until silver proves its mettle and ...