Friday, October 4, 2013

Farmers Will Be Driving Lamborghinis

First of all, let me state that if you don't trade futures then I'm only going to give you a very tiny spot in my head space. Trading futures might be the last bastion of true american capitalism and a little bit of the wild west. It is truly a zero sum game. I'm motivated by imagining that some rookie Goldman Sachs kid is on the other side of my trades and gets fired at the end of every month because I am personally crushing him every time he places a trade against me. Having said that, there are very few, if any large money managers positioned for the upcoming run in commodities and commodity stocks. While some of these stocks have already made a good sized move off the lows, there is much more to come in the months ahead. I don't think the outperformance will become glaringly obvious until early next spring. Be ready, because it is time to put the Jimmy Rogers trade on in full force. The two charts below give you a microcosm of why I believe this shift is underway. Make no mistake, we are still all fucked in the end. Are you prepared to get Dennis Gartmaned? And btw, for full disclosure, I am long your rich aunt's house worth of VALE and I bought more GDX today. However, my favorite stocks are in the oil space, as long as they are not XOM.

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