Have a look at SBSW!

Fundamentals do not get any better!

So Gold is breaking out!

Gold value momentum (all caps!) since 1999 against the Russel 2000:

Gee, I hate inflation (now) and deflation (coming) regimes, look at the capital curve / chart above. I mean, could this (gold miners) not trend a bit better?

Problem is also that gold stocks do not help in a liquidity event like 2008 and 2020, they get sold hard too. They are a real bad hedge!

So, you have to time gold right, and you have to time a liquidity event (volatility trending!). I miss goldilocks and reflation already, but hey it’s what it is, we need to grind!

Also, I had a look at gold miners individually. Tons of very bad fundamentals, so you are at the 100% peril that gold needs to go up in order for them to work.

I found one (!) exception with stellar fundamentals: SBSW.

Fundamentals for a miner do not get any better!

And as written, it fits the deflation regime, which is knocking on the door here.

I rarely play individual names with size but will accumulate that monster.

Earnings on SBSW tomorrow!

Buy the way VXX is trending!

Still, once again the US had an exceptional (relative!) strong day yesterday. Look at EWG (German stocks) and you see what I mean.

My take is, that a lot of capital is fleeing to the US, Dollar very strong too.

If you are long, be long in the US (or great ADRs that are trading in the US as an ADR, there are not many, but some nuggets can be found). Also, I still think you need to be hedged.

Small Cap value momentum is still extremely, extremely strong. But when we change to deflation, that will not be the case anymore. But so far, I cannot see any cracks —>

Very tough market, stay conservative!