In doing my weekly review of markets and listening to podcasts, I came across an interesting trade setup, given the current market environment that seems to favor higher and more persistent inflation than perhaps what some market participants believe. There are those, of course, that believe the inflation we are currently seeing is transitory and you only need to look at several key commodities that have fallen off their recent parabolic highs (i.e., copper and lumber), although they continue to remain at elevated levels relative to last year - lumber is still up 83% over last year's price, copper is still up 49% from a year ago. Oil is the one notable exception to the trend, its price continuing to rise steadily this year from last year's lows, the chart showing a very bullish trend:
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Interesting Long / Short Trade
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In doing my weekly review of markets and listening to podcasts, I came across an interesting trade setup, given the current market environment that seems to favor higher and more persistent inflation than perhaps what some market participants believe. There are those, of course, that believe the inflation we are currently seeing is transitory and you only need to look at several key commodities that have fallen off their recent parabolic highs (i.e., copper and lumber), although they continue to remain at elevated levels relative to last year - lumber is still up 83% over last year's price, copper is still up 49% from a year ago. Oil is the one notable exception to the trend, its price continuing to rise steadily this year from last year's lows, the chart showing a very bullish trend: