While a retest of the recent lows is possible (albeit highly unlikely), the market should continue advancing in volatile fashion into our July 12-16 topping window. By early August, this correction should have finally reached its conclusion. We are highly confident in these projections, and expect a massive H2 rally to occur into the end of the year. In his congressional address today, Powell continued to emphasize the Fed’s aggressive course of action to handle inflation, and will likely complete this cycle of hiking over the next two months. The stage will then be set for inflation to be tamed for the time being as well as for the rate hiking cycle to be consequently suspended. Markets can then proceed to rally with the present’s foremost hindrances to the economy out of the way. However, not before more volatility is seen into August.
Most commodities have limited downside and high upside from present levels. Gold should not breach $1800, and has the potential to retest its all-time highs into August. Gold is a tremendous store of wealth in the present environment, especially with the value of each dollar diminishing at the fastest pace in decades.
Statistical arbitrage high frequency trading algorithms almost single-handedly caused this massive sell-off in OIH. Expect it to rebound quickly and powerfully.
Our projection of Bitcoin reaching $1m by 2030 is an extremely high conviction forecast. While it seems farfetched and convoluted, blockchain technology is comparable to the internet in the 90’s. We foresee Web 3.0 as the next major worldwide technological revolution.
Uranium is trading at major support that is highly unlikely to be broken. These levels are a great buying opportunity.