Don here...
Blake just caught something in today's PMI data that has me fired up—and it's not what you'd expect.
Financial talking heads focused on the headline numbers showing manufacturing and services both climbing back above 50 (which is bullish).
However, there's a deeper story unfolding that's creating explosive opportunities in one specific sector…
Here's what's really happening:
Manufacturing companies are getting crushed on input costs—they're paying significantly more for raw materials but refusing to pass those costs on to consumers. Their margins are getting squeezed hard.
But here's the kicker—the companies supplying those raw materials are printing money.
Basic materials just became the hidden beneficiary of this whole setup. While industrials struggle with margin compression, the miners, agricultural suppliers, and packaging companies feeding them are experiencing their highest margins in months.
Blake spotted multiple stocks breaking out today:
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Newmont hitting fresh 52-week highs (and gold is barely moving)
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Packaging Corporation breaking its March highs on massive volume
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CF Industries threatening to blast through resistance toward $100
The beautiful part? This isn't about commodity prices going higher—it's about demand finally returning while these companies already have peak margins.
If the PMI data is signaling the start of a real manufacturing recovery, we could be looking at 15-20% moves in these basic material plays while everyone else is distracted by the headline numbers.
👉 Click here to watch Blake break down the exact levels and targets
To your success,
Don Kaufman
Chief Market Strategist, TheoTRADE
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