Gold miners are surging to new all-time highs, begging Copper miners to come boot scootin'.
For decades, they have been moving in tandem with liquidity cycles and the broader pulse of global growth. If you're bullish on one, it's impossible to be bearish on the other.
The tariff headline that sent U.S. Copper futures cratering a few months ago appears to be a contract-specific disturbance rather than a global trend change. Around the world, Copper prices have remained resilient, and the attack from the Tariff Man didn't cause a flinch.
Global miners are where the relative strength lives, and that is where we want our exposure.
This is a Ray Charles correlation:
As you can see, the Global X Copper Miners ETF $COPX and the VanEck Gold Miners ETF $GDX move so closely together that even Ray Charles could see the correlation.
With Gold miners already making new all-time highs, the next logical step is for the red line to follow.
Think of this as a relay race where the baton has just been handed from precious to base metals.
Here comes the hand-off:
The Global X Copper Miners ETF is printing fresh multi-decade highs and looks poised to retest the 2011 peak. Since the April low this year, the price has rallied nearly 75% in a vertical line, putting the momentum firmly in a bullish regime.
There's nothing bearish about the overwhelming demand for these stocks. Instead, we think this strength will beget more strength.
We want to own COPX above 53, with a target of 63 over the coming 2-4 months. Over longer timeframes, we're looking at a secondary objective of 96.
For most investors, COPX offers a liquid and diversified vehicle for participating in this move. But for those looking for real juice - the kind of trade that can double your money - you need to see this week’s Commodities Trade of the Week below.
Energy - Commercial hedgers are holding their smallest net-short position in Crude Oil in years. That's the opposite of what we typically see in energy bull markets, when commercials build massive net-short exposure.
Softs - Commercials added more than 50,000 contracts to their largest net-long Sugar position in years. This commodity has been the biggest laggard in the soft commodity complex, but the smart money is betting it'll catch up.
Currencies - Commercial hedgers added nearly 700 contracts to their largest net-long Dollar Index position in years. While the technicals still suggest dollar weakness, this positioning is a significant headwind for USD bears.
This week, we're outlining one of our favorite equity setups in the copper mining industry.
First, let's dive into what's driving the move in COPX:
This table includes the components of the Global X Copper Miners ETF, filtered by proximity to 52-week highs. As you can see, China Resources $JINFF and Zijin Mining are at the top of the leaderboard. The relative strength from SolGold $SLGGF is also notable.
Northern Dynasty Minerals $NAK is one of the smallest holdings, and it has also been one of the worst performers recently.
Since June 27, we've been long Lundin Mining $LUNMF, Hudbay Minerals $HBM, and Taseko Mines $TGB. Additionally, we've owned First Quantum Minerals $FQVLF since June 4.
All of these trades have been trending in our direction, and the risk remains skewed in our favor. With that in mind, let's dive into this week's trade.
Premium members can see the entry and target levels below. 👇
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