It’s happening.

After years of waiting, the entire precious metals complex is finally coming to life, and the charts confirm it.

Gold broke out first. 

Now, Silver, Platinum, and the miners are joining in. 

Our Equal-Weight Precious Metals Index is printing fresh all-time highs, marking what we believe is the beginning of a new secular uptrend.

Miners are starting to lead. 

Risk appetite is returning. 

And short sellers? They’re getting squeezed.

This week, we’re reviewing the latest breakout setups in the metals space, including a small-cap Silver name retesting a key level with explosive upside potential.

I’m going out for drinks tonight with a good friend who owns a real estate agency in Key West.

We’re going to talk about home prices, inventory levels, and mortgage rates… and I can’t wait.

The truth is, I’ve been thinking about the housing market a lot lately. I’m really into it.

Rose and I have decided to give the mainland a shot and are moving up to the Naples area this week. We’ll miss Key West, but we are excited about this new chapter in our lives.

We took our time searching for a place over the past year or so. In the process, I’ve spent countless hours on Zillow $Z and have looked at a variety of South Florida homebuilder communities— from Lennar $LEN to Taylor Morrison $TMHC and Pulte Homes $PHM. 

I’ve dealt with Rocket Companies $RKT, with whom I have my first mortgage. 

And this past week, it’s been all about shopping for furniture on sites like Wayfair $W.

Every major commodity boom of the last 25 years has followed the same blueprint:

🔺 CRB Index starts curling higher
🔺 Yield curve inverts… then steepens
🔺 And commodities don’t just rally—they detonate.

Look at the chart. 

2001 → Inversion → Steepening → Oil +300%
2006 → Same setup → Same outcome
2020 → Rinse and repeat

And now?

It’s happening again.

The CRB is coiling just beneath multi-year resistance. The kind of tight, coiled spring that doesn’t let go gently. Momentum is building. The yield curve—the most reliable forward indicator we’ve got—is turning up from historic depths.

This isn’t some lagging inflation print. This isn’t a Fed narrative. This is price. And price is truth.

This is a setup that only comes around a few times in a generation. Most investors sleep through it. They wait for confirmation. They miss it.

But not you.

Hemingway once said bankruptcy happens two ways: gradually, then suddenly. Commodity cycles are the same. They creep. They churn. Then they rip.

...

From the Desk of Steve Strazza @Sstrazza.

Welcome back to Under the Hood, where we'll cover all the action for the two weeks ended June 6, 2025. This report is published bi-weekly, in rotation with The Minor Leaguers.

What we do here is analyze the most popular stocks during the week and find opportunities to either join in and ride these momentum names higher, or fade the crowd and bet against them.

We use a variety of sources to generate the list of most popular names.

There are so many new data sources available that all we need to do is organize and curate them in a way that shows us exactly what we want: a list of stocks that are seeing an unusual increase in investor interest.

Click here for a behind-the-scenes look at our process.

From a recent Strazza Letter, Steve mentioned: 

Semis just failed to complete a top relative to the broader market and are now reasserting their leadership.

If this risk-on group is in good shape, then stocks are likely to perform well in the future. So this is a positive development from a broader market perspective. 

So today's trade is in a lesser known semiconductor name that is atop the relative strength leaderboard.

In today’s Daily Digest, we’ll review the following:

1. No new positions today.
2. Adjustment to ARKK position.
3. Closed GDX at Profit Target.
4. Current status of open campaigns.
5. Volatility Snapshot.

Let’s dig in!

On weekends like this, we're glad to be technicians.

Geopolitical tensions in the Middle East. Rumors flying. Headlines all over the place.

Everyone’s trying to figure out what it all means. What’s next? Who’s in control?

But we're chart guys.

We're not in the business of guessing what politicians will do or how the news cycle will spin. That’s not our edge. That’s noise.

The only thing that matters to us is price.

And the charts are speaking loud and clear.

Money rotates. From one asset class to another. It always has. That’s the game. There are periods for equities. Periods for commodities. Even for bonds.

Right now, this ratio of the S&P 500 vs the Invesco DB Commodity Index tells us something might be shifting.

It’s been quiet—but the signs are there.

That ratio stalled at the same level it did in 2020....

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“You don’t need to take reckless risk. But you do need to stop treating your inner-knowing like it’s a dangerous enemy.”

That line’s been bouncing around in my head all week.

I talk all the time about the importance of having a plan and sticking to it. Because, truthfully, trading without a plan is just gambling with a more expensive costume on. I need a framework — some sense of what I'm trying to do, what I'm risking, and what outcomes I'm aiming for.

Planning is visualizing.

When I build a plan, I’m creating a map of what could happen — the likely, the unlikely, the hoped-for, and the dreaded. Mapping out scenarios helps me prepare emotionally and financially for what may unfold.

But sometimes, the market veers off-script. And in those moments, another voice enters the chat.

It’s not part of the plan.

It’s not in my trade journal.

It’s not even easy to explain.

But it’s real — and it’s been right more...

Welcome back for another Top Down Trade of the Week. 

This one’s a classic leadership scan.

We start with the best sectors, then drill into the subgroups. We pick one, and then take a look at the top stocks in it. 

This week, Technology is the big standout—climbing seven spots in our sector rankings.

While Energy maintains the top spot, Industrials and Communications have also gained ground.

Here is a look at our overall industry rankings, which shows semiconductors jumping into the top 5.

Semis just failed to complete a top relative to the broader market and are now reasserting their leadership.

If this risk-on group is in good shape, then stocks...

This is the weekly post that aggregates all the charts we put together throughout the week and organizes them all into one, easy to flip through deck.