November 12 Biweekly Strategy Webinar Q&A

Below, please find subscribers’ Q&A for the November 12 Mad Hedge Fund Trader Global Strategy Webinar, broadcast from Incline Village, NV.

Q: Is there really rising industrial demand for silver (SLV)?

A: Tech companies are definitely signing deals to get more power from zero-carbon sources. We are getting brownouts in certain parts of the country now because of power shortages. AI providers can pay a lot more for electricity than you can, because they’re making huge profits off of it and you’re not. You’re just trying to stay warm and get hot water, so this could be a recurring problem. It may also become a political issue in future years as to who gets the electricity. Cameco (CCJ) rocketed up an eye-popping 32% in a week. Consumer brownouts are coming. The U.S. is set to invest $80 billion in nuclear plants. Avoid all conventional energy plays in oil, gas, and coal. The future is nuclear. Nuscale (SMR) has just had a big sell-off and might be worth taking a look at — they’re a small modular reactor builder

Q: Is oil (USO) bottoming out here?

A: (XLE) is having a nice rally off of the Russian oil sanctions and hopes of higher oil prices next year. These are all pretty high-dividend players now. ExxonMobil (XOM) hit a new 6-month high. Occidental (OXY) finally crawls off the bottom. Natural gas (UNG) up 50% in two weeks as winter approaches. (CCJ) showed a monster move in uranium plays. Vistra (VSTR) is looking weak along with other alternative nuclear plays.

Q: Who are the new end buyers of Solver (SLV)?

A: Industrial demand is increasing due to EVs and solar panels. Even though we are in a “nuclear winter” for EVs, Tesla (TSLA) will still make 1.8 million cars this year, and you need 20 pounds of silver per car. Investment demand is also rising, riding on gold’s coattails as a flight-to-safety asset and inflation hedge. Precious metals demand in the 1970s was entirely inflation-driven; this is a bet that inflation will continue or worsen. The U.S. extended Critical Metal designations to silver, copper, coal, and aluminum — meaning the government can now begin stockpiling silver.

Q: What’s your view on gold here?

A: Gold is having a strong week. (GDX) taking off. Barrick Mining (B) is up 10% this week. Newmont Mining (NEM) up 10%. Silver Trust up is nearly 10% and possibly taking a run at $50 again. Silver miners looking good. Wheaton Precious Metals (WPM) is highlighted as a favorite to buy on dips. Platinum (PPLT) grinding sideways with weak liquidity.

Q: Micron Technology (MU) is going parabolic — should you chase it?

A: No. You want to buy stocks before they go parabolic, not after. It’s Part of the buy-low-sell-high strategy. I’m thinking of patenting it.

Q: What are your thoughts on Cathie Wood’s ARK Innovation Fund (ARKK) ETF?

A: It’s very high volatility with high returns as long as moonshot technologies keep delivering. It is also prone to the biggest sell-offs during corrections. (ARKK) tracks closely to (ROM).

Q: Are U.S. stocks still expensive, and will there be another sell-off when government session resumes?

A: Stocks are expensive but about to get more expensive and may continue rising through next year until a peak is hit. The end of the government shutdown brings massive spending, especially deficit spending, which is short-term bullish but carries long-term costs. Stay close to the exit before the “flash fire starts at the movie theater.”

To watch a replay of this webinar with all the charts, bells, whistles, and classic rock music, just log in to www.madhedgefundtrader.com, go to MY ACCOUNT, click on GLOBAL TRADING DISPATCH, then WEBINARS, and all the webinars from the last 12 years are there in all their glory.

Good Luck and Good Trading

John Thomas
CEO & Publisher
The Diary of a Mad Hedge Fund Trader