June 18, 2024
Mish's Daily
By Mish Schneider
South Africa is renowned for its developed and diversified mining industry.
We put the country ETF EZA on our radar as mining output has declined significantly since the 1970s due to various factors, including political issues, high costs, and labor disputes.
This has left production or supply very possibly unable to meet rising demand.
Here are some key aspects of mining in South Africa:
Precious Metals: Platinum and gold.
Palladium
Coal Mining
Chrome and Magnesium-used in stainless steel
Diamonds
The Daily chart shows a 5% rise today in EZA the ETF as it gapped higher to a nearly a 52-week new high.
The biggest sector weighting is in the Financial Services. Third is Basic Materials with specialty chemicals, gold, copper and building materials at the top.
Linde Plc (LIN) is a holding. I mention this as the chart is also interesting looking.
Newmont Mines NEM) is the largest holding in the gold industry-another chart to keep an eye on.
Back to the chart, this move up puts the ETF in a strong bullish phase with momentum and leadership moving up as well.
Even more interesting is the weekly chart.
Note the 200-week moving average in green.
If EZA closes the week above, it will be the first time since last July.
Plus, the momentum and leadership look quite favorable for a much bigger move higher.
The monthly chart has a story as well.
I am a big fan of monthly charts.
I particularly like when I see a phase change (business cycle) on a 2-year or 23-month moving average OR a 6-year or 80-month moving average.
Last month EZA cleared the 23-month.
Thus far, this month, EZA has yet to take out May’s highs, but it is close.
More importantly, we are in the start of a 2-year business cycle expansion which has reversed from its down move going back to 2022.
In May 2011, this ETF peaked at 77.58.
That gives EZA a lot of upside with a good risk to under May 2024 low.
Day off Juneteeth-I will be on Making Money with Charles Payne! Please tune in!
Educational purposes only, not official trading advice.
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June 19th Fox Business
June 20 Singapore Breakfast Bites Radio
June 21 Schwab
June 24 Benzinga Pre-Market Prep
June 24 CNA Asia
June 27 Live coaching
July 2 Yahoo Finance
July Date TBD Wealth 365
Weekly: Business First AM, stockpick.app
ETF Summary
S&P 500 (SPY) New highs to start the week
Russell 2000 (IWM) 197-202 tightest range to watch
Dow (DIA) Marginally confirmed the phase change over 50-DMA
Nasdaq (QQQ) All-time highs yet again
Regional banks (KRE) Watching the range 45-50 CAREFULLY
Semiconductors (SMH) ATHs
Transportation (IYT) Could not hold over the 200-DMA
Biotechnology (IBB) 134 support 140 resistance
Retail (XRT) Rallied off the 50-DMA like her life depended on it-we need more
iShares iBoxx Hi Yd Cor Bond ETF (HYG) This is all risk on-as long as it holds above 76.50
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