Nobody’s Watching This

There are bull markets… and then there are raging bull markets.

The kind where entire pockets of the market are quietly going vertical while most investors are still glued to the same old narratives.

This is one of those moments.

Earlier this week, Bloomberg ETF analyst Eric Balchunas pointed out something remarkable. A niche tanker ETF just printed a 1,000% return in a single year.

This isn't a leveraged fund. It's simply a plain vanilla fund tied to tanker futures.

And the craziest part?

Almost nobody is talking about it.

The fact that almost nobody is talking about this is the tell.

Because the biggest opportunities don’t dominate headlines, they live in the corners of the market where few people are looking… until it’s too late.

And that’s exactly what’s happening here.

We don’t need to trade that ETF to understand what’s going on. 

The real opportunity that we want to allocate capital towards is downstream, in the companies actually benefiting from these surging tanker rates.

Looking at our Marine Shippers Index, the price has been soaring since it bottomed last April.

And after a brief pause over the past few weeks, we’re seeing what appears to be a textbook bear trap.

The price broke above a shelf of former highs, pulled back just enough to shake out weak hands, and is now reclaiming that level with authority. 

And when these traps spring in the direction of the primary trend, the moves that follow tend to be powerful.

And it gets even better when we zoom out and look at this group relative to the broader market.

Because these stocks aren’t just going up in absolute terms… they’re outperforming their alternatives.

You can see this clearly when you look at our Marine Shippers Index relative to the Dow Jones Industrials.

This key intermarket ratio is in the process of breaking out to new 52-week highs and resolving a massive base that has been forming for over a year.

One thing we know for a fact is that money flows to where it’s treated best. It always has, and it always will.

And right now, this overlooked corner of the market is treating shareholders well.

These aren't the crowded consensus names everyone is already talking about.

They're just plain old boats. 

The ones that serve as the plumbing of the global commodity machine.

This is what a supercycle looks like in real time.

Explosive moves in obscure areas, breakouts from massive bases, and leadership emerging where nobody expects it.

And most importantly… opportunity.

Because if this trend continues, and all evidence suggests it will, there's still plenty of opportunity for us to extract money from the market.

The headlines and flows will come later.

For now, it’s just price.

And price is telling us everything we need to know.

What are you seeing in commodities? Let us know what you think. We may include your comment in a future post!

Commodities Trade of the Week

This week, we're highlighting our favorite setup in the marine shipping industry. We believe the stock has the potential to more than double from here, and it'll pay us a massive dividend while we hold it.

Premium members can see the full details below. 👇