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Copper Is Crushing Gold — Use This Trade to Profit From It

by | Oct 15, 2021

This past week was the official kickoff for earnings season, and we started off with some explosive earnings from bank stocks. And after having the most bullish week in the stock market since August, I put together a list of stocks to watch the week of Oct. 18 so that traders won’t get caught offside again.

However, what was weird to me was that JPMorgan — the stock that’s been on my radar this month — crushed its earnings estimate by about 30%… and the stock ended up selling off around 2%… (although it has since rallied back up).

JPM runs a tight risk control system, which has helped it avoid major disasters in the past (like the 2008 financial crisis). 

I expect it to navigate the risks in China and bonds better than anyone. On Monday, I said that I also expect to see the uptick in yields manifest in banks earnings as they leverage higher rates to make more on their lending business, which is robust.

I also said on Monday that investors should expect a bounce around $160 — with upside to $200.

And what do you know, that’s exactly what happened.

On Friday, JPM opened north of $165, and I have a good feeling there’s more upside left in this stock. 

But that’s not the only stock to watch the week of Oct. 18.

Major Stocks Investors Should Watch the Week of Oct.18

Copper has also been on my stock watchlist for a while now. The price of copper has been really strong lately — probably due to the global energy crisis plaguing the stock market — and on the charts, it looks like copper is in the middle of a ballistic move to the upside.   

It’s up 93% in a year and about 16% in six months — and I’m expecting much more from this metal.

In fact, I have a spread going on right now in my Money Link service where I’m long on the metal miners and short on gold miners.

Gold is going down in this inflationary environment while copper is ripping. And this is likely just the beginning of what could be a parabolic move.

Check out the video below to learn more about this Money Link and stocks to watch the week of Oct. 18.

Send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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