25Oct10:51 amEST

Know Which Way the Wind Blows

With the Dollar and rates both sinking this morning, equity bulls have an opening to rally as year-end seasonality turns more bullish in a pronounced manner.

True, the FOMC, followed by the midterms, not to mention tonight's GOOGL MSFT V earnings (just to get the ball rolling before AAPL AMZN META later this week) and a side dish of Russia and China risk are all potential catastrophic events for markets. However, these are also known risks at this point. And if they do not deliver the armageddon scenario it may very well lead to many hedges being burned to the ground. 

One step at a time, however. And with commodities bid alongside most equities it beings plays like UEC, a heavily-shorted uranium miner, back into play on the long side.

Two points about UEC: It survived peer CCJ's dilutive secondary offering selloff very well, as you can see the chart clearly intact, basing tightly. Earnings are not until late-December, to boot, giving the stock time to short squeeze higher over $4.25 or so.  

Overall, if the Dollar and rates unwind continues lower the winds should blow in favor of those charts which have held up well the last few months and are coiled up to resolve higher, mainly in commodities. 

Japan is Clearly Sweating Th... Stock Market Recap 10/25/22 ...


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