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STOCK MARKET CORRECTION IS DONE!

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Hello All:

As mentioned in my previous article, I called for a CORRECTION and NOT A CRASH and that is exactly what happened. You're welcome. I hope that I have your attention now. The correction is my opinion now over and we should be going long commodities in general. One of the gems that I like right now is PLATINUM. I also like Bean oil / Beans, Heating Oil/ CL and Coffee but that I will follow up in subsequent articles.

Why? It's not just me saying it. It is the World Platinum Investment Council:SOURCE. Here is the bottom line of what they say in a spreadsheet:

(k oz) Supply Demand Net Stocks
2020 7102 7438 -336 3189
2019 8261 8386 -125 3525
2018 8070 7270 800 3180
2017 8050 7740 310 2380
2016 7900 8275 -375 2070
2015 7890 8200 -310 2445
2014 7250 7970 -720 2755
2013 7825 8490 -665 3475


Compare supply and demand for the last 8 years and you see a deficit in some years and surpluses in others. This year 2020 it is a year of deficit of 336k oz. In years of deficit, of course, we should see the market going higher to curtail demand. Unfortunately for the last week or so platinum has had a correction with a stronger dollar and weaker stock market. But this I believe is about to change as the USD rally is exhausted and there is talks of more stimulus. More stimulus means more money pumped in the system and more demand for commodity staples. Stock market is no different as it is heavily influenced by MONEY POURING IN from stimulus and consumer confidence.

Let's look at the 20 year platinum chart-

The analogous years to 2020 are 2015 and 2016 when not only did Platinum spend most of the time above $ 900 but also closer to $ 1100 - $ 1200 range AND also when the USD spent most of the time between 95-100. These are ingredients barring any problems with another stock market rally for Platinum to go much higher.

We went long today and when I say we went long today I mean MY CLIENTS AND I WENT LONG. I trade along with my clients so I have every incentive to make the right calls unlike some analysts that throw darts on the board hoping they are right without any skin in the game.

If you want to learn more about our strategies, sign up for FREE 1 WEEK TRIAL! Our coordinates are below.

Best Regards

Edgard Cabanillas

TEL: + 1 949 357 4948

edgard@alpine-trading.net

www.alpine-trading.net

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RISK DISCLAIMER: PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING COMMOIDITIES FUTURES AND OPTIONS IS SPECULATIVE, INVOLVES RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS.

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