The First Four Formal Recommendations

Welcome to the inaugural issue of the Crypto & Commodities Trader.

If you’ve come this far, then I’d like to congratulate you for what I think was a very wise decision. I also want you to know that I am grateful for your confidence in me, and I will always give you the very best within me in our attempt to capture alpha from these two incredible asset classes.

Now, today’s issue is going to get right to the point, because I know you’re eager to get started with your first formal recommendations. So, what I’m going to do today is give you a brief description of the four new buys I want you to make, including their respective stop losses.

In next week’s issue and in subsequent issues, I will give you updates on these positions. And I will add more information so that you know what my thinking is on each, including the fundamental, technical and “NewsQ,” my term for the real information/news that drives asset prices.

And so, here we go!

iShares Silver Trust (SLV)

This exchange-traded fund (ETF) focuses on reflecting, as closely as possible, the price of silver bullion, which provides a handy way for investors to own silver without having to worry about the complexity and expense of securing or transporting the metal itself.

The fund’s assets are almost completely in the form of silver bullion held by the fund’s custodian, JPMorgan Chase, alongside a very small amount of cash when necessary. Here, it is also worth pointing out that the fund does not act to take advantage of fluctuations in the price of silver.

Year to date, SLV is up 34.3%, a very healthy move. Yet I think we are on the brink of another breakout, as the chart here of SLV shows the shares with a bullish “cup-with-handle” pattern that began in May and that continued until this week, with the shares pushing on new-high territory.

Chart courtesy of www.stockcharts.com

Demand for silver as a commodity in electronic and other devices, as well as demand as a store of value, and as the preferred metal that traders use to capture alpha, all adds up to a potentially big breakout that we can take advantage of today with the following buy:

ETF: Buy the iShares Silver Trust (SLV), at market, with a stop loss set at $24.70.

Options: Buy the SLV Jan $31.00 calls (SLV250117C00031000), at market. The calls last traded for $1.71 and expire on Jan. 17.

Our official buy prices on all these recommendations will be based on the prices at the time this email is sent.

HIVE Digital Technologies Ltd. (HIVE)

When it comes to Bitcoin, creating the digital currency is a matter of efficient “mining.” By that, I mean that if you have the technology, a low-cost energy source and the right minds at the helm guiding the way, you can solve the calculations and create Bitcoin. I will go more into this process in a later issue, but today understand that my favorite company mining Bitcoin is HIVE.

I say that because I personally know the principles at the firm, and I can vouch for their expertise and sound decision making when it comes to operations. Now, understand that owning HIVE isn’t owning actual Bitcoin. Rather, it’s owning shares of a company that, metaphorically, digs Bitcoin into existence. And with Bitcoin prices surging, and in my view, very likely to keep going strong, buying HIVE and the related call options represent tremendous alpha opportunities.

Chart courtesy of www.stockcharts.com

Technically speaking, shares of HIVE have just made a “double bottom,” a bullish technical pattern that took shape in August and that continues through today. In fact, in the days leading up to this writing, HIVE shares have breached their 50- and 200-day moving averages and are now poised for a run back to the July highs—and quite likely much higher.

Equity: Buy HIVE Digital Technologies Ltd. (HIVE), at market, with a stop loss set at $2.75.

Options: Buy the HIVE Jan $3.50 calls (HIVE250117C00003500) at market. The calls last traded for $0.80 and expire on Jan. 17.

Invesco DB Commodity Index Tracking Fund (DBC)

Want to own the biggest, most-heavily traded and arguably the best ETF for the commodities complex? Well, you do right now, as commodity prices in aggregate are benefitting of late from the Fed’s big rate cut last week. And this week, a big move by China to stimulate its economy with one analyst called a “policy bazooka” is likely to boost demand for all things commodities in the world’s second-largest economy.

That ETF is the Invesco DB Commodity Index Tracking Fund (DBC).

DBC uses a portfolio of exchange-traded futures on the following commodities: Light Sweet Crude Oil (WTI), Heating Oil, RBOB Gasoline, Natural Gas, Brent Crude, Gold, Silver, Aluminum, Zinc, Copper Grade A, Corn, Wheat, Soybeans and Sugar. The index is composed of notional amounts of each of these commodities.

Chart courtesy of www.stockcharts.com

The chart here of DBC shows a big cratering in the fund from July to August, and then again from August to early September. Yet that trajectory has turned bullish in a hurry, with DBC surging back past its 50- and 200-day moving averages. DBC now trades just slightly below the 200-day moving average, so now is the time to grab it before it makes another bullish run.

Equity: Buy the Invesco DB Commodity Index Tracking Fund (DBC) at market, with a stop loss set at $19.

Options: Buy the DBC Jan $24 calls (DBC250117C00024000) at market. The calls last traded for $0.25 and expire on Jan. 17.

Prairie Operating Co. (PROP)

Our fourth and final formal recommendation is likely familiar to you if you are a subscriber to Successful Investing, and it is oil driller Prairie Operating Co. (PROP).

Prairie is an oil and gas driller that has operations in Colorado’s DJ Basin. This is what I like to call an old-fashioned oil company. You know, the kind of company that makes human flourishing possible by resurrecting crude oil and natural gas from its organic entombment and bringing it out of its earthly coffin so that it can live again in the form of energy.

Chart courtesy of www.stockcharts.com

Yet, to do that successfully, you need to be in the right location, have the right team in place and have the requisite capital needed to implement your plan. In the case of Prairie, it has all these positives.

The company operates in one of the largest oil and natural gas reserves in the country, Colorado’s DJ Basin. Its management team is comprised of extremely smart and successful veteran oil industry executives and financiers with proven track records of successfully creating shareholder wealth in the industry. And, importantly, the company has a pristine balance sheet with zero debt.

Your editor doing “boots-in-the-oil” research at the Prairie well in Colorado on Sept. 26 (yes, that was yesterday) along with Prairie CEO Ed Kovalik.

I am fresh off my visit to Prairie’s first drilling location, and I must say it was an amazing experience to see the technology, science and hard work aimed expertly at the drilling operations. The company is just beginning to frack the wells it’s drilling, and that will lead to the pumping out of oil and natural gas—and the collection of revenues that will fuel a bull run in PROP shares.

If you want more info on Prairie and what makes it so unique, please read my special report from earlier this year.

Equity: Buy Prairie Operating Co. (PROP), at market, with a stop loss set at $6.75.

Note: No options are available yet on PROP.

So, there you have it, our first four formal recommendations in the Crypto & Commodities Trader.

Please make these new recommended buys as soon as you are able, as you don’t want to miss out on the profit opportunities I’ve listed here.

Next week, you will receive your regular weekly hotline, which will be sent every Thursday. However, if opportunity warrants, we won’t hesitate to send special alerts to buy/sell new or existing positions, so be mindful of that possibility from here on.

Finally, I can’t stress enough how honored I am that you are now a subscriber to this service. Together, we are going to make cryptocurrencies and commodities our new profit “force multipliers!”