Saturday, 11 May 2024

By Murray Dawes Editor, Retirement Trader and Fat Tail Microcaps

[3 min read]

Dear Reader,

I think we all agree that the last few years has been incredibly difficult to navigate as an investor.

Solid money making opportunities have been few and far between.

My attitude has been to sit on my hands as much as possible and only trade if the opportunity was so compelling I couldn’t ignore it.

That approach has been working out well in one of my trading services, Retirement Trader, where I have sent out 10 trade recommendations over the past year. Only one has been closed for a small 5% loss.

Two other trades have been closed at breakeven and all the others are in the money.

I like to start with a bird’s eye view of a commodity or sector and wait until there is a convergence between a fundamental story and a technical buy signal.

Then I zero in on the companies and ETFs in the sector and look for the best ones to go after based on the right combination of fundamentals and technicals.

In my Retirement Trader service, which uses trading techniques to enter investments for more conservative traders and investors, I advised my members to enter the uranium and gold sector just before both blasted off.

I thought it could be a useful exercise to put together a bunch of free videos for you, if you are interested in learning about the process I follow.

In these videos I show you how I cottoned on to the opportunity in uranium and gold prior to the sharp rallies that occurred. I also outline the logic behind choosing the ETF and stocks that I thought had the best chance of outperforming.

I also tell you about the next commodity that I reckon is poised to outperform.

The videos are short, and you’ll get four of them sent to you next week, so please sign up here  if you’d like to learn about the nuts and bolts of picking investments before the crowd arrives.

In today’s Closing Bell, I have a look at the current situation in the rare earth sector, because I think it may end up being the fourth commodity to take off.

It isn’t ready to go yet, but I wanted to prepare you for what may be coming so you can strike when the time is right.

I think China is using their market power in various commodities to pressure them lower, thus scaring off the nascent competition from the West.

If prices are being forced down into the cost curve it is only a matter of time until marginal players are closed down and prices start heading north again.

The technical situation is looking interesting but as I said above it isn’t quite there yet. Lynas Corporation [ASX:LYC] is the obvious player to consider and their share price is looking close to a buy after a few years of grinding lower.

I show you the long term set up in rare earths and also analyse Lynas in the Closing Bell video above.

However, I think there is one particular commodity that is much closer to making a move higher. I’ll tell you all about it in my free video series, which is coming out next week, so be sure to sign up for it here.

Regards,

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).