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Strategies & Market Trends : Natural Resource Stocks

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Recommended by:
isopatch
kckip
Roads End
roguedolphin
From: Hugh Bett7/6/2025 10:18:53 PM
4 Recommendations  Read Replies (1) of 108578
 
Sunday Night Charts

I thought it appropriate to see where we ended last week because the following week is likely to be eventful. Wednesday is looking to be the sequel to Liberation Day. Looking back in April, the big news wasn't the equity markets slumping but the 10-year Bond yields soaring. It only took 5 days for the yield to rally over 700 basis points. Shortly thereafter the TACO trade became a meme, and a 90-day pause was initiatied against aggressive tariff rates.

Tonight, I post the 10-year Bond yield as it will be the short term market (and policy) mover. Rates have been drifting higher ahead of signing the BBB and now are just shy with what should be stiff resistance. My guess is if we see interest rates in response to Liberation Day II, shoot through 4.60% Mexican will again be on the menu. Anyone for TACO Tuesday in about 9 days?

My second chart is the US dollar Index. Liberation Day premier, shortly after its release saw the USD shed 5%. If the sequel is as popular as the original, we could see Gold push higher and possibly take out $3500 this month.

The theatrics should begin this week. How the US Bond market audience responds will probably dictate responses in several markets. Gold, Silver and Copper are likely the ones in the commodity space to have the strongest reactions.

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Credit to tobinator00
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