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Rick Bensignor – Small Cap Rotation, Tech Stocks, Interest Rates, Copper, Gold

Cory
July 21, 2024

Rick Bensignor, President of Bensignor Investment Strategies joins us for the special Sunday Editorial to share his trading strategies and outlook for small cap stocks, tech stocks, interest rates, copper and gold.  

 

We kick off with the impact of lower-than-expected inflation CPI data on July 11th, which triggered a rotation from big tech to small caps. Rick elaborates on his tactical moves, including buying the Russell 2000 ETF (IWM) and shorting QQQ. The conversation transitions into the sustainability of the small-cap rally, heavily influenced by expectations of the Federal Reserve lowering interest rates. 

 

Rick then provides an analysis of bond yields, particularly focusing on U.S. 10-year Treasury yields and the critical support level of 4.13%. He highlights the potential implications if yields break below this level. Next, Rick discusses the broader market sentiment, including the rotation into various sectors like financials, smaller tech stocks, and REITs, driven by the anticipation of lower rates. Rick contrasts this with the concept of yield curve un-inverting and what it signals for the economy. 

 

The discussion then shifts to commodities, with a detailed look at copper and gold markets. Rick explains the speculative nature of the recent copper rally and its subsequent correction, emphasizing the role of China and market sentiment in driving these moves. For gold, Rick maintains a positive long-term outlook but advises cautious short-term trading, noting the importance of key levels and the influence of the dollar and bond yields.

 

 

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Discussion
12 Comments
    Jul 21, 2024 21:40 PM

    Gold is in for a big rise versus the dollar but a huge drop versus gold miners.
    https://stockcharts.com/h-sc/ui?s=%24GOLD%3AGDX&p=M&yr=13&mn=0&dy=0&id=t6385525909c&a=1732311483&r=1721596202353&cmd=print

    Jul 21, 2024 21:32 PM

    Opportunities in Silver Explorers and Developers – Part 3

    Excelsior Prosperity w/ Shad Marquitz – 07/21/2024

    https://excelsiorprosperity.substack.com/p/opportunities-in-silver-explorers-c50

      Jul 21, 2024 21:26 PM

      We know silver has always been in Mexico and parts of the US. There is a new President in Mexico with an engineering degree from a US University. (I believe it is a PhD). But Jamie Dimon is still the head of a criminal bullion bank in the US. I am not sure which to be more concerned about .., but we know which government has already deregulated corporations and which Court passed Citizens United. That makes one country with an uncertain policy.

        Jul 21, 2024 21:34 PM

        Dimon for Treasury Secretary under Trump.

    Jul 22, 2024 22:04 AM

    I just read an article by Bob Hoye. Some TSX.V listed stocks have an “H” listing in their designated symbol, like Cosigo Resources CSG.H. I phoned up the stock traders at my brokerage and asked several of them what the H designation meant, none of them could give me an answer including two of their supervisors. The “H” designation means that although the stock is listed on the TSX.V it is not available to be purchased by foreign investors. Cosigo’s management have applied to have this restriction dropped from the stock listing and that will open it up to more traders. DT

    BDC
    Jul 22, 2024 22:37 AM

    https://www.tradingview.com/x/pmfvyo7k/
    NatGas has likely bottomed.

    Jul 22, 2024 22:23 AM

    Canada is intervening in the overnight REPO lending market; one or more banks could be in trouble. I think I know which one it is, there is one CDN bank that has been buying US banks over the last several years. Our banks have always been considered safe but I’m not sure that is the case anymore. DT

    https://x.com/FinanceLancelot/status/1814424707363385763

    Jul 22, 2024 22:37 AM

    Canadian rate decision this week, could be a .50 basis point drop IMO, but that may trigger the great unwashed to start buying stuff again so the central bankers will have to admonish us again because we are having too much fun replacing the essential stuff that has broken down over the last years.

    Jul 22, 2024 22:49 AM

    All Western Governments have been inflating credit over the last twenty years and more severely in the last 10 years. The normal course for The Bank of Canada and The Fed should have been to raise rates slowly a long time ago and put a pinch on money printing, but the governments only want more fiat. If they lower rates it will cause much more inflation and they can’t raise rates because they can’t afford the payments on the interest of all debts government, private, and for business. This is not a game anymore, the guys at the top know this but they are desperate not to have a crash on their watch. Looking out for #1! DT

      Jul 22, 2024 22:58 AM

      The public thinks the government will step in to save them if the system fails, just ask The North American native how the government has looked after them and expect the same. DT

    Jul 22, 2024 22:12 PM

    SLV took out Friday’s low by a nickel today in order to precisely hit its rising “6-1-8” Fibonacci fan support…
    https://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=6&dy=0&id=p81078054405&a=1732399369