Commodities Correction Complete?Among the most noticeable market sectors moving last week was the metals, metals miners and other basic materials stocks. The consensus grows that the Fed is running out of room to continue hiking. The market appears to be viewing that the next 75 basis point hike in November may be the last. All eyes will be on the Fed's forward guidance. Any dovish tone will push stocks higher. One could expect that commodities may continue to be a strong hedge against inflation. IGE is one of many ways to hedge your portfolio against inflation.
The stock appears to have formed an A-B-C correction and may be headed into wave 3. I would prepare for a very long term hold here. One always has to keep in mind that in Commodities, often the final wave 5 is the most powerful. That being said, we are still in the early stages of the commodities move. Also see gold which appears to have successfully tested the bottom and appears headed higher.
