Stock market bulls have been watching the homies like hawks.
It's a vital industry right now.
Alfonso recently wrote about the Home Construction ETF $ITB breaking to new lows relative to its defensive peer group, the Real Estate ETF $IYR.
He said, "This ratio has historically been a leading indicator for the broader market. During prior cycles, you can see clear divergences where ITB/IYR tops or bottoms ahead of major turns in the S&P 500."
In true commodity supercycles, shiny yellow rocks outperform stocks.
Last week, we outlined why we thought buying gold and selling stocks was a good idea. If you haven't had a chance, you can check out that post.
But that's not it.
We've also been pounding the table on how bullish we are on the precious metal mining stocks. They're testing a key level of polarity relative to gold futures.
This is the level where the miners begin to outperform gold.
We're also heading into the sweet spot for junior gold mining stocks based on seasonality.
This is all happening at a time when commodities are supposed to be strong.
February is one of the best months of the year for commodities:
As you can see, February has historically been an excellent month for owning commodities. The only better month is April, and the difference is marginal.
Will this be another strong February? We think so!