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Why You’ll Profit From the Metals and Mining ETF Rally: John’s Chart of the Week

Why You’ll Profit From the Metals and Mining ETF Rally: John’s Chart of the Week

Story Highlights

  • The Fed’s rate cuts resurrect this forgotten industry.
  • 1 chart predicts a rally over the next four months.
  • See how you can profit from this short-term price move.

The U.S.-China trade war left the base metal — common metals such as zinc, copper and lithium — and mining industry for dead in 2019.

But I see a comeback in the making.

You see, the Federal Reserve — the U.S. central bank — cut rates last week. This allows for a short-term price move we can make money on.

And there’s one exchange-traded fund (ETF) that’s set for a rally … again. I told you about this fund back in August.

But don’t worry. Even though it rallied back then, you haven’t missed out! You can make 21% on this ETF in the next four months.

Take a look at this week’s chart:

metals and mining ETF rally - Johns Chart of The Week Nov 6, 2019

And there’s a simple indicator in this trade setup that confirms the gains that are in play.

The Indicator That Helps Predict a 21% Rally

Now, I told you about the iShares MSCI Global Metals & Mining Producers ETF (BATS: PICK) on August 21.

The fund was set to rally as much as 33% by the end of this year. That rally started right after we published the article.

I was able to identify this play with a system my colleague Matt Badiali and I developed.

It identifies high-probability trade setups. That just means the outcomes of our trades are more likely to go our way than against us.

We use Apex Movement Patterns, or AMPs. Those are the patterns of short-term movements in the stock market that our system identifies.

You can see the pattern in the chart. It’s labeled A-B-C. That’s the indicator that predicts a 21% rally for PICK.

This is your buying opportunity. And there’s a way you can pocket bigger gains from this ETF’s rally, from the metals and mining rally itself.

Get Ready for This Rally

Buying into PICK will give you exposure to giant companies both in the mining and the material space. You’ll find companies such as BHP Group Ltd., Rio Tinto PLC, Vale SA and Nucor Corp.

This rally will happen because the mining industry depends on economic growth. And confidence in the economy creates confidence among investors in mining stocks.

The Fed cutting interest rates does exactly that.

See, the Fed makes policy to help control the flow of money in the economy.

Think of it like a bartender. If the bar is open, drinks flow. But when the bar closes, people can get unruly and more irrational.

The Fed’s rate cuts are exactly why mining — and the whole basic materials sector — outperforms the market at the end of an expansion. That’s the phase in the business cycle that shows economic growth.

The U.S. and China are trying to play nice on trade. They hope to remove some of the tariffs on metal products.

And with the Fed restoring confidence in the economy, it bodes well for natural resources and materials stocks in the months ahead.

Now’s the time to position yourself for a 21% rally in PICK!

You can buy shares of PICK and hold them until February — or until they hit $35 … whichever comes first.

That’s the simplest way for most retail investors to capture these short-term gains.

If you’re hesitant about placing your bets, I can help you there.

See, our system allows you to turn a small move in a stock — such as PICK’s 21% move — into massive double- and triple-digit wins.

Folks have seen incredible profits of $7,672 … $14,239 … even $23,429 … each in an average of just 23 trading days.

If you follow our research and trade alerts and keep an open mind, you’ll be amazed at just how fast the money opportunities can pile up.

All you have to do is take the next step.

Click here to learn more.

Once you do, you’ll be on your way to making more money in the next year than you’ve ever seen in your life.

Good investing,

John Ross

Editor, Apex Profit Alert

 

 

 

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