Steel’s Turn to Shine

We’ve been all over this rotation in the metals space for months now.

Recently, we highlighted that the Copper Miners ETF $COPX was catching up to the Gold Miners ETF $GDX, and that catch-up has happened much faster than we expected.

Today, COPX is breaking out to new all-time highs, screaming higher toward the first Fibonacci extension target we laid out in that earlier post. It's one of the hottest trades in the world right now.

Meanwhile, our ASC Green Revolution Index - which tracks an equal-weight basket of rare earths, lithium, copper, cobalt, and nickel - is entering a brand-new primary uptrend. The trade we outlined back then has already exceeded expectations.

This rotation is no joke...

The base and industrial metals space is firing on all cylinders, and the next great rotation is about to begin - into the VanEck Steel Producers ETF $SLX.

We’ve already seen Metals & Mining $XME and Copper Miners break out to new all-time highs.

So the question now is simple - where are the Steel Producers?

The VanEck Steel ETF is coiling in a massive base, and it looks ready to moon any day.

Do you see what's happening here? 

First, it was the Metals & Mining ETF, then came the Copper Miners, and now Steel Producers are the last group to catch some rotational tailwinds in the great base and industrial metals bull market.

As the godfather of technical analysis, Ralph Acampora, taught us, sector (in this case, intra-sector) rotation is the lifeblood of a bull market. 

Let's talk about the setup in SLX:

The VanEck Steel ETF is pressing up against its 2011 peak, which also marks the 61.8% retracement of the prior bear market. A breakout above this level would flip the path of least resistance decisively higher toward the 2008 highs.

We want to buy SLX on strength above 76.50, with a target of 114 over the coming 3-6 months.

This is the kind of setup we live for. It's a decade-long accumulation pattern, with momentum building across the entire metals complex and money shifting into the next lagging group.

If and when this breakout triggers, it’s not just another move in steel - it’s the confirmation of a full-blown base and industrial metals supercycle.

From there, we’ll have plenty of new trades to line up in the individual names as the bull market rotation continues.

What are you seeing in commodities? Let us know what you think. We love hearing from you!

Commodities Trade of the Week

This week, we're outlining a stock that's riding the tailwinds of this base and industrial metals supercycle. Like SLX, it's putting the finishing touches on a multi-decade base, and the price looks ready to surge higher.

Premium members can see the entry and target levels below. 👇