Commodity Stocks Are Rallying to Incredibly Muted Sentiment

Tempting as it may be to join the chorus of throwing cold water on all things inflation, it is worth noting that even an inflationary "head-fake" can last a few innings longer than most expect before the "party" ends. Thus, as commodity-related stocks shine again today in many corners of the market, especially oil, uranium, tankers, steels, ags, etc., a certain listlessness hangs over the complex as sentiment is far from excited about these moves. 

Naturally, a major reason for the listlessness is due to the continued disappointment in growth stocks and the inability of the likes of ARKK NFLX and XBI to so much as reclaim their respective 200-day moving averages. And with ZM earnings tonight, another round of dip-buyers may find themselves trapped after the report if Zoom cannot blow away what are still quite lofty expectations. 

In the meantime, one of my holdings, Cactus, below on its daily chart, is breaking higher from a tight base in the context of a clean long setup in a firm uptrend on this timeframe. I was waiting for a move like this but even I needed to see it to believe it after years upon years of commodity stocks lagging badly. 

But as we see actual evidence of the tide turning, the issue for me is when sentiment becomes more accepting of this theme.

In the meantime, if you put in the work I think you will be surprised at how many impressive charts there are in overlooked corners of the materials/energy space.