Rare earths overview and more good intercepts from Meeka Gold and Southern Cross Gold

Sentiment continued to recover over the week as many stocks marched through their downtrends. Quite a few have risen to the point where they are approaching resistance lines for longer term downtrends. If they conclusively break through these it will be a very positive sign, but it is more common for them to vacillate at these junctures, and possibly even correct lower. Look for macro and micro events that will give a clue as to the probable direction but on balance it would appear that the glass is half full.

Some months ago I said that we were going through a paradigm change in the markets owing to the observation that the inability of the Fed to use monetary policy to save equity markets in times of inflation. Well, I still hold that view, but the performance of the market in the last one or two months necessitates an amendment to the perspective. The strong rebound in the market suggests that the intervention of the Fed is not necessary. There is enough depth in the market that it has been able to recover without any help from the Fed. The fact that this has happened as interest rates have risen is noteworthy.

If inflation rates can continue to moderate and expectations of less aggressive interest rate rises dominate investor sentiment, we should all be happy. However, we never know what is over the horizon.

The China/Taiwan issue has dropped back a gear, but there is concern regarding the nuclear power plant in Ukraine at which the Russians are currently squatting. Could Russia damage the plant either deliberately or inadvertently through recklessness? If so, that could quickly damage sentiment in the uranium sector if it results in release of radioactive gases into the atmosphere. Nuclear power is great, but only if it is managed properly and human incompetence or maliciousness doesn't intervene. 

 WeeklyComm13August2022a.pdf