Brightstar Resources (BTR:AU) has announced Further broad intercepts of high-grade gold at Jasper Hills
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Resources & Energy Group Limited (ASX: REZ) (REZ or the Company) is pleased to announce the successful completion of its first gold doré pour from the trial vat leach program at the East Menzies Gold Project, following the scheduled carbon strip on 1 February 2025 in Kalgoorlie.
HIGHLIGHTS
- REZ successfully pours first gold doré from its maiden vat leach trial at the East Menzies Gold Project
- Gold doré from this first pour has now been transported to the Perth Mint for refining and sale
- The trial shows the effectiveness of vat leaching as a gold recovery method and provides confidence for further expansion
- Onsite operators anticipate a regular gold pour cycle, with gold pours expected to occur approximately every three weeks moving forward, reinforcing the continuity of production at East Menzies
- Demonstrating confidence in this process, REZ has already submitted a second mining application with DMIRS for an expanded vat leach operation, covering 8 new vats and up to 40,000 tonnes of material from the Maranoa deposit
- This gold doré pour coincides with record-high gold prices, strengthening REZ’s potential for strong cash flow generation in the coming months
REZ Group Managing Director J. Daniel Moore said:
‘The first gold doré pour is a transformational moment for REZ, proving the effectiveness of our vat leach process and reinforcing our ability to generate near-term cash flow.
The trial has given us the confidence to move forward with an expanded mining and processing program at East Menzies, and we are already taking steps to scale up our operations. We are well-positioned for sustainable growth with strong gold prices and an optimised production model.’
COMMISSIONING OF A MINING & PROCESSING PROGRAM
- With the successful output from the vat leach trial confirmed, REZ is now progressing with commissioning a structured mining and processing program at East Menzies.
- To accelerate growth, the Company has submitted an application to the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS) for an additional 8 vat leach dams, allowing for the processing of up to 40,000 tonnes of material from the Maranoa deposit.
- This expansion positions REZ to transition from a trial phase to a structured, scalable gold recovery operation and gold producer.
STRATEGIX EXPANSION AND PRODUCTION GROWTH
- Demonstrated Gold Recovery Success – The trial vat leach process has successfully recovered gold from the Maranoa deposit, validating this low-cost processing method.
- Gold Doré Transported to Perth Mint – Gold doré bars from this first pour have now been delivered to the Perth Mint for refining and sale.
- Scaling Up Operations – REZ’s new DMIRS application represents a significant step forward in unlocking the full production potential of the consolidated East Menzies Project.
- Sustained Production Strategy – The Company is implementing a stockpiling and batch processing model, ensuring consistent production while maintaining flexibility in refining and sales.
EXPLORATION UPSIDE: GIGANTE GRANDE
Beyond near-term production, REZ’s Gigante Grande prospect presents a potential company-defining gold discovery. The Company continues to refine its exploration model and sees multi-million-ounce potential at this prospect.
Click here for the full ASX Release
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Meteoric Resources NL (ASX: MEI) (Meteoric or the Company) is pleased to provide an update on recent drilling completed at the Agostinho Prospect (Figure 1), located in the north of its 100%-owned Caldeira Rare Earth Ionic Clay Project (Caldeira Project or Project), in the state of Minas Gerais, Brazil.
Highlights
- Exceptional ionic clay intercepts up to 19,183ppm Total Rare Earth Oxides (TREO)
- Enriched Magnetic Rare Earth Oxide (MREO) up to 6,691ppm
- MREO peak zones up to 38% with an average of 30.4%, an increase of 7.4% compared to the Global Resource average.
- Elevated Heavy Magnetic Rare Earths (HREO) up to 2% of TREO
- Drilled 3,301m for 116 holes with outstanding intercepts:
- AGOAC0107 – 24m @ 6,918ppm TREO [0m] with 27% MREO
- including 6m @ 19,183ppm TREO [2m] with 34.9% MREO
- AGOAC0110 – 22m @ 4,422ppm TREO [0m] with 27.7% MREO
- including 10m @ 7,831ppm TREO [0m] with 35.6% MREO
- AGOAC0079 – 28m @ 3,183ppm TREO [0m] with 26.9% MREO
- including 8m @ 7,462ppm TREO [0m] with 37.6% MREO
- AGOAC0098 – 28m @ 5,315ppm TREO [0m] with 27.4% MREO
- AGOAC0070 – 22m @ 4,890ppm TREO [0m] with 27% MREO
- AGOAC0092 – 22m @ 4,323ppm TREO [0m] with 27.2% MREO
- including 6m @ 19,183ppm TREO [2m] with 34.9% MREO
- Mineralisation averages 28.4m thickness from surface over of the entire License
Meteoric’s Chairman, Andrew Tunks said:“The exploration and drilling teams continue to identify additional high-grade areas across the Caldeira Project. These remarkable results confirm the extensive nature of mineralisation outside the current resource base. Further it highlights that there is considerable opportunity for Meteoric to target enriched zones of magnetic rare earths and heavy rare earths using our extensive database of project wide sampling which is unmatched inside the Caldera.
It’s important to remember that we have still only infill drilled eight of the 69 licenses available at the Project and continued identification of high-grade mineralisation creates greater optionality for the potential expansion of the Project, at the right time, to support the sustainable supply of rare earth materials to the western world.”
Click here for the full ASX Release
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Earnings season is in full swing in the pharma sector with major players sharing their latest results.
On Tuesday (February 4), Amgen (NASDAQ:AMGN), Merck (NYSE:MRK) and Pfizer (NYSE:PFE) released financial results for the most recent quarter, providing critical data points for evaluating investment potential.
Amgen reports strong Q4, will focus on trials in 2025
Amgen’s financial results for Q4 and the full 2024 year reveal quarterly revenue of over US$9 billion, beating analysts’ estimates of US$8.87 billion. Revenue for the year came in at US$33.42 billion, ahead of projections of US$33.19 billion, driven by an overall increase in the volume of demand for its products.
An 11 percent year-on-year increase in product sales was primarily by the pharmaceutical company’s strong performance in oncology and immunology therapies, along with sales of Repatha, which treats high cholesterol, and Evenity, which treats osteoporosis in postmenopausal women.
Earning per share (EPS) also beat estimates of US$5.08, coming in at US$5.31.
Amgen performance, February 4, 2025.
Chart via Google Finance.
Looking ahead, Amgen’s revenue guidance for fiscal year 2025 was between US$34.3 billion and US$35.7 billion, in line with the average estimate of US$34.53 billion. Phase III trials of its weight management candidate MariTide, a dual GIP and GLP-1 receptor modulator, are expected to begin in H1 2025.
While Amgen’s shares have decreased by over ten percent year-on-year, they have increased by nearly 11 percent year-to-date. The stock closed with a marginal gain of 0.05 percent at US$289.01.
Merck beats on revenue, but Gardasil sales decline
Merck fell by nearly 11 percent ahead of the opening bell on Tuesday after its Q4 and full-year 2024 financial results showed adjusted sales revenue for its key vaccine, despite exceeding sales and profit expectations.
The company reported revenue of US$15.62 billion, beating analysts estimates of US$15.55 billion.
Earnings per share for the quarter were also ahead of expectations, US$1.72 compared to US$1.69; however, earnings per share were US$6.74 for the full year, compared to analysts’ estimates of US$7.62.
Sales reached US$15.6 billion in Q4, an increase of 7 percent from the prior year.
Full-year sales also rose by 7 percent to US$64.2 billion, driven by sales of Keytruda, the company’s leading cancer therapy. Keytruda brought in US$29.5 billion, representing an annual growth of 18 percent.
The company also announced positive topline results from a Phase 3 trial evaluating a subcutaneous formulation of pembrolizumab used in combination with Keytruda in adult patients with metastatic non-small cell lung cancer.
However, sales of Gardasil and Gardasil 9, two HPV vaccines, declined by 3 percent to US$8.6 billion.
Merck performance, February 4, 2025.
Chart via Google Finance.
For its 2025 fiscal year, Merck expects full-year adjusted EPS to be between US$8.88 and US$9.03, and revenue to fall somewhere between US$64.1 billion and US$65.6 billion. Analysts had been projecting EPS of US$9.13 and revenue of US$67.07 billion. The company also withdrew its US$11 billion sales target for Gardasil by 2030.
“This sales range reflects a decision to temporarily pause shipments of GARDASIL/GARDASIL 9 into China beginning February 2025 through at least mid-year,” the company said in an accompanying statement. According to Biopharma Dive, CEO Rob Davis clarified in the firm’s earnings call that the pause will “facilitate a more rapid reduction of inventory and help support the financial position” of its Chinese distribution partner, Zhifei Biological Products.
“China still represents a significant long-term opportunity for Gardasil given the large number of females, and now males with our recent approval, that are not yet immunized,” Davis said.
Pfizer discusses Seagen acquisition impact and 2025 outlook
Pfizer’s Q4 and 2024 financial results show revenue at US$17.8 billion, an increase of 22 percent compared to the previous year and exceeding expectations of US$14.31 billion. Revenue, excluding COVID-19-related therapies, was largely driven by Seagan’s portfolio of cancer therapies following its acquisition in December 2023.
However, full-year revenue fell slightly short at US$63 billion, compared to projections of US$63.6 billion. EPS was also below analysts’ estimates of US$0.71, coming in at US$0.63.
Its share price fell by 4.3 percent in early trading and ended the day down 1.26 percent.
Pfizer performance, February 4, 2025.
Chart via Google Finance.
Looking ahead, Pfizer will continue to focus on growing its pipeline of cancer drugs in 2025, with three potential therapies awaiting regulatory approval in 2025. The company will also initiate clinical trials for therapies related to inflammation, immunology, and internal medicine. For its 2025 fiscal year, Pfizer is projecting revenue of between US$61 billion and US$64 billion, aligning with the average estimate of US$63.22 billion.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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While gold is often steals headlines, copper is arguably the most essential resource for the modern world.
However, as demand for the base metal grows, supply is becoming increasingly restricted — in fact, major mines like Codelco’s Chuquicamata mine in Peru and Rio Tinto’s (ASX:RIO,NYSE:RIO,LSE:RIO) Bingham Canyon mine in Utah, which are over a century old, are returning lower grades and don’t have replacements set to come online.
This year’s copper outlook panel at the Vancouver Resource Investment Conference brought together industry experts Rick Rule, Lobo Tiggre and Ivan Bebek to discuss the state of the copper sector and what investors should know.
Copper demand to rise with or without AI, EVs
It’s hard to talk about copper without mentioning the energy transition, artificial intelligence (AI) and electric vehicles (EVs), but, Tiggre, who is CEO of IndependentSpeculator.com, emphasized that demand will rise with or without them.
“How much EV demand will there be? I don’t care; copper demand is going up without it. How much will AI turbocharge it? I don’t care; copper demand is going up anyway, and it’s supply constrained,” he said.
Rule shared that sentiment, noting how high demand is from developing nations alone.
“There are 1 billion people with no access to primary electricity; 2 billion people on Earth who have access to intermittent or unaffordable electricity,” said Rule, who is proprietor at Rule Investment Media. He went on to note that the copper boom between 2000 to 2010 could be attributed to the urbanization of China.
Ivan Bebek, president and CEO of Coppernico Metals (TSX:COPR,OTCQB:CPPMF), also discussed how the global population and urbanization are driving demand for copper.
“Construction is huge. In the early ’80s, the population was around 4 billion people; we’re now pushing 8 billion. So just think about that development curve and how much that has changed,’ he said.
‘You know, the EV thing is one thing, but mining construction is huge.’
Bebek went on to explain how urban centers are increasing their density to accommodate population increases. Homes built during the baby boom era are being torn down and replaced with condos. He sees this everywhere he goes.
“Copper hasn’t gone away. As much as we want to focus on EVs, there’s naturally a position where there’s going to be a lot of development that’s going to draw a lot more copper,” Bebek said.
Supply a growing concern as copper mines age
Supply is another key part of the copper equation, and it’s being increasingly constrained.
Part of the problem is financing in the industry, which was a theme throughout the conference. Junior companies dominate the exploration space and in many ways function co-dependently with large mining operators.
Over the last dozen years or so, money hasn’t been flowing down to the juniors from the well-financed majors. Instead, capital has been focused on mergers, share buybacks and dividends
The result is that majors aren’t adding to their mineral reserves, and juniors aren’t finding significant deposits.
“Buying isn’t building, so this isn’t bringing any more copper into the world,’ said Tiggre.
‘The discoveries have to happen. This is not an ‘if’ question — it’s a ‘when’ question. And the low-hanging fruit has already been picked. So somebody has to go out there and discover the stuff,” he added.
Copper mines operate on economies of scale, and small mines in the sector generally aren’t feasible. The industry’s mines are some of the largest and most productive in the world, but they’re also some of the oldest.
Rule described how, at 45 years old, BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) Escondida mine in Chile is still regarded as a young mine, especially in comparison to Chuquicamata and Bingham Canyon. While these are all massive operations, they are now suffering from lower grades, and depleting copper reserves.
Rule suggested that replacing these aging giants should have started 25 years ago, not today.
“And we did it, we found it — one deposit: Resolution. Wonderful deposit. A billion tonnes of ore in a great place between copper mines, towns, roads, highways — everything. One and a half percent copper, three times the average grade worldwide. It’s been stuck in permitting for 26 years,” he said.
Rule’s reference to the Rio Tinto and BHP joint venture outlines one of the critical problems faced by the industry today. It can take 25 years or more to take a copper project from discovery to production.
The majority of that time is spent on permitting, and while some jurisdictions are easier than others in that regard, building a copper mine is no easy task. It requires considerable capitalization and risk.
With that in mind, Rule advised mining companies to focus on scale.
‘If you’re going to take big risks, you gotta be shooting for big rewards.”
Overall, the panelists agreed that deficits in copper supply will challenge the industry in the coming years.
Is now a good time to invest in copper?
With a supply deficit expected to impact copper in the next few years, should investors enter the space now?
All three panelists are bullish on copper, but each of them offered a different opinion.
Rule suggested looking at the people involved in the companies. More specifically, he told the audience he wants to see a team with experience specific to mining or exploring for copper.
“You want to deal with somebody who knows what porphyry rock packages look like. You don’t necessarily want just exploration experience; you want access to copper exploration experience. The experience that the team got the reputation on has to be relevant to the task at hand,” he explained.
From Bebek’s point of view, it comes down to capital. “Everything about copper is expensive, and that’s where the rewards are worthwhile. My main thing would be to ask about the capital that they have or the line of selling capital. You can also look at share structure to see if they’re in a financial state with how many shares they have out.’
He also suggested that investors should not be afraid to ask how much management has invested in the stock. “If they’re not buying their shares of their company at cheap prices, why should you?”
Perhaps the most simple and direct advice came from Tiggre, who discussed understanding a project’s quality.
“Crap is crap. Crap at higher prices is still crap. Crap at lower prices is still crap,’ he said.
‘If you’ve got a copper project that’s been known for decades and it’s still on the ground and it’s not held up by permitting, it’s still in the ground because it wasn’t economic.’
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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As a new year began, the cannabis industry saw a range of impactful events in January.
Legal obstacles continued to impede progress on a once-promising attempt to reschedule cannabis in the US, and President Donald Trump’s leadership choices for key agencies are diminishing hopes it can be accomplished.
Meanwhile, cannabis banking reform won’t be discussed at Wednesday’s (February 5) meeting of the Standing Senate Committee on Banking, Commerce and the Economy, and Congress seems in no rush to address it.
Read on for more details on these events, which highlight the complex and dynamic nature of the cannabis industry as it continues to navigate legal, financial and regulatory challenges while experiencing growth and evolution.
US lawmakers unlikely to prioritize banking reform
The SAFER Banking Act was blocked from being attached to a government funding bill in December, delaying the issue until the next Congress session and delaying the prospects for cannabis banking reform.
With Republicans now holding a majority of the Senate, it appears unlikely that the issue will be raised at the next Senate banking committee meeting, which is scheduled for Wednesday and will focus on debanking.
At this point, the path forward for banking reform in the US is uncertain.
Senator Tim Scott, the Senate banking committee’s new chair, opposed the SAFER Banking Act during its last hearing in September 2023, citing concerns that the bill would facilitate money laundering and illegal trade of “weapons, fentanyl and even people.’ A new bill would likely need provisions to address those concerns in order to secure his vote.
New Senate Majority Leader John Thune (R-SD) has an even more contentious history with cannabis legislation. He opposed the SAFE Banking Act when House lawmakers tried to attach it to a stimulus relief bill in 2020, and he was also one of 26 lawmakers who urged US Attorney General Merrick Garland to reject the Department of Health and Human Services’ recommendation to reschedule cannabis under the Controlled Substances Act.
Despite rumors that lawmakers will soon reintroduce cannabis banking legislation, a spokesperson for Cannabis Caucus Co-chair Rep. Dave Joyce (R-OH) told Marijuana Moment on January 24 that a new bill is “not imminent.’
Cannabis rescheduling meets delays and controversies
In December, the push to reschedule cannabis hit legal and procedural hurdles. A hearing set for January 21 was ultimately canceled, with Chief Administrative Law Judge John Mulrooney, who is overseeing the process, criticizing the US Drug Enforcement Administration’s (DEA) for failing to submit required documents.
On January 7, Mulrooney, wrote to DEA Administrator Anne Milgram, informing her of his decision to grant a request to remove the agency from proceedings. The request was filed by cannabis advocacy groups on the grounds of improper conduct within the DEA “related to alleged improper ex parte communications between the Agency and other actors’ — specifically Smart Approaches to Marijuana, a prominent anti-cannabis legalization group.
Mulrooney gave the DEA until January 13 to file a response, but the hearing was ultimately canceled “pending resolution of an appeal filed by a party in the proceedings” on January 15.
Milgram announced her departure from the agency the next day.
Agency official George Papadopoulos stepped in as her replacement until Trump chose Derek Maltz, a retired director of special operations for the DEA, to lead the administration on January 21.
In a January 3 interview, Maltz told NTD’s Steve Lance that America’s cannabis industry an “open door” to the Chinese Communist Party’s cannabis-growing operations. He also suggested that cannabis with higher strains of THC leads to psychosis, depression and anxiety, and said that cannabis acts as a gateway drug, eventually leading young people to other drugs like Oxy or Xanax, which could end up being laced with fentanyl.
Further clouding the future of cannabis legalization, Pam Bondi, Trump’s nominee for attorney general, repeatedly refused to clarify her position on cannabis issues during a question-and-answer period following her confirmation hearing before the Senate Judiciary Committee. This was despite Trump’s previous indications of support for the issue, and his full pardon to Russ Ulbricht, operator of the dark web drug market Silk Road.
Amid the delay in the rescheduling processes, a new poll from NuggMD reveals that a whopping 96 percent of Americans don’t trust the DEA to serve as an “unbiased proponent” of cannabis rescheduling.
Virginia makes progress on adult-use cannabis
Lawmakers on a Virginia Senate committee have advanced Senate Bill 970, which proposes a framework to legalize and regulate an adult-use cannabis market in the state. If passed, cannabis retail licenses could be issued on September 1, 2025, with sales slated to begin by May 1, 2026.
The bill was introduced by Senator Aaron Rouse (D) on January 17. Despite a veto threat from Virginia Governor Glenn Youngkin (R), both the Senate and House committees in Virginia have advanced the proposed legislation in four separate voting rounds. It is now heading to Virginia’s House of Delegates.
Separately, Virginia’s House of Delegates advanced HB 2485 on Monday (February 3). It is similar to legislation penned by Delegate Paul Krizek (D), and would allow adults to purchase up to 2.5 ounces of cannabis from regulated state-licensed retailers. It is now on track for consideration in the Senate.
Tilray sees growth across all segments in quarterly results
Tilray Brands (NASDAQ:TLRY) reported financial results for its second fiscal quarter of 2025 on January 10, revealing a 9 percent increase in net revenue from Q2 2024 to US$211 million.
Growth across all four business segments — alcoholic beverages, cannabis, distribution and wellness — also resulted in a 29 percent increase in gross profit compared to the previous year, with US$61 million earned.
During its earnings presentation, Tilray introduced a new initiative called Project 420, a US$25 million synergy plan to optimize operations and cut costs for its beverage business, which earned US$63 million in net revenue and showed the strongest growth by percentage, advancing at an annual rate of 36 percent. Tilray’s cannabis business segment, by comparison, grew by 35 percent in Q2 compared to 31 percent in the prior year, bringing in US$66 million in revenue.
The company also reaffirmed its net revenue guidance for fiscal year 2025, projecting net revenue to fall somewhere between US$950 million and US$1 billion.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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By many measures, millennials are doing considerably well financially. Still, fewer younger adults are thinking about retiring in the traditional sense one day.
“Retirement is becoming more deprioritized,” said Michael Liersch, head of advice and planning at Wells Fargo.
“Ten or 15 years ago that was always the number one goal,” he said. Now, “actually living one’s life in the moment is a bigger priority.”
Although this cohort is very focused on building wealth, “the end game might not be no longer working and sitting on my Adirondack chair,” he said. “That just might not be it.”
More than one-third, or 37%, of Americans want a retirement that looks different from previous generations, according to a 2024 report from Edelman Financial Engines.
Most say that means a more active and adventurous lifestyle. And 32% say they will never be able to “fully” retire, the report found.
“This contrasts sharply with retirement stereotypes of the past, where stability and relaxation were the primary goals,” the report said.
Meanwhile, the median wealth of younger millennials and older Gen Zers — or those born in the 1990s — “more than quadrupled” in recent years, according to an analysis of 2022 data by the St. Louis Federal Reserve.
The number of millennials with seven-figure retirement balances also jumped 400% as of the third quarter of 2024, compared to a year earlier, according to data from Fidelity Investments prepared for CNBC.
Compared to other generations, millennials are also more likely to say that their income went up over the last few months and that they expect their earnings potential to increase again in the year ahead, another report by TransUnion found.
Collectively, millennials are now worth about $15.95 trillion, up from $3.94 trillion five years earlier, according to the most recent Federal Reserve data as of the third quarter of 2024.
But a lot has changed for younger generations, too, said Brett House, an economics professor at Columbia Business School.
What assets millennials have on hand and their relative financial stability “is determined by how they shape up against immediate needs — such as housing down payments or emergency medical payments — and their capacity to generate income to replace salaries and wages in retirement amidst the shift from defined benefit to defined contribution pensions, or the elimination of workplace pensions all together,” House said.
Most younger adults are no longer getting pensions of any kind, so individuals who enter retirement age are now more dependent on personal savings and Social Security, he said.
“There are a lot of financial priorities that we are all trying to reach simultaneously,” said Sophia Bera Daigle, founder and CEO of Gen Y Planning, a financial planning firm for millennials.
Many millennials must contend with hefty student loan balances, mortgages, car payments and child care costs in addition to saving for retirement or future college costs, she said.
“People are really feeling the cash crunch in their 30s to 40s,” said Bera Daigle, a certified financial planner and a member of CNBC’s Advisor Council. “Their net worth is going up but they don’t feel like they are getting ahead.”
That has also contributed to changing views on retirement for millennials, she said.
“When I got into this business, retirement was about quitting the grind … playing golf,” Bera Daigle said.
Now, “it’s really more about flexibility,” she added. “We don’t know what retirement will look like in 20 years… there’s a lot more emphasis on choosing the work they want to do in their 60s.”
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President Donald Trump said Monday he would create a sovereign wealth fund, a pool of assets like those that exist in other countries that can help pay out regular funds to ordinary citizens.
However, full details on how the fund would work were not immediately available. Trump made the announcement in an Oval Office ceremony. He had floated the idea of creating such a fund during his 2024 presidential campaign.
Treasury Secretary Scott Bessent offered brief remarks at the event outlining the fund.
‘It will be a combination of liquid assets, assets that we have in this country as we work … to bring them out for the American people,’ he said.
Trump said Commerce Secretary Howard Lutnick would also be involved in standing up the fund, which could take as long as a year to establish. Lutnick said Monday that the fund could possibly be used to help take over TikTok, though he did not offer details about how such an endeavor would work.
“The extraordinary size and scale of the U.S. government and the business it does with companies … should create value for American citizens,” Lutnick said. “If we are going to buy 2 billion Covid vaccines, maybe we should have some warrants and some equity in these companies and have that grow for the help of the American people.”
Norway has the largest sovereign wealth fund in the world. It takes oil revenues and reinvests them in assets like stocks. Its current net worth is equivalent to approximately $325,000 per Norwegian citizen.
Other countries with large sovereign wealth funds include China, Saudi Arabia, Australia, Iran and Russia.
Alaska and Texas also have state-run funds.
A 2024 study from the Carnegie Endowment for International Peace found that without proper safeguards, such as governance and regulatory structures, sovereign wealth funds can turn into ‘conduits of corruption, money laundering, and other illicit activities.’
CORRECTION (Feb. 3, 2025, 8:39 p.m. ET): A previous version of this article misattributed a quotation. Howard Lutnick said the U.S. government’s transactions with companies “should create value for American citizens,” not Scott Bessent.
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Technology Moves Back into Top-5
As we wrap up another trading week, a notable shift has occurred in the sector rankings.
The technology sector, after a brief hiatus, has clawed its way back into the top 5, pushing energy down to the 7th position. This reshuffle reflects the dynamic nature of market rotations and sets the stage for potential shifts in investment focus.
The New Sector Lineup
- (1) Consumer Discretionary – (XLY)
- (2) Financials – (XLF)
- (3) Communication Services – (XLC)
- (4) Industrials – (XLI)
- (6) Technology – (XLK)
- (7) Utilities – (XLU)
- (5) Energy – (XLE)
- (8) Materials – (XLB)
- (9) Real Estate – (XLRE)
- (10) Consumer Staples – (XLP)
- (11) Health Care – (XLV)
The top-4 and bottom-4 positions did not change. The weakness of the Energy sector has caused Technology to move up into the top-5 and Utilities to take the number 6 spot.
Weekly RRG
On the weekly Relative Rotation Graph (RRG), XLY maintains its position in the leading quadrant with the highest RS ratio, despite some loss in relative momentum.
- XLC, at #3, has halted its momentum loss and shows a slight move to the right, picking up relative strength again.
- XLF (#2) is rotating through the weakening quadrant but still has the potential to turn around.
- XLI (#4) displays a weak tail, pushing into the lagging quadrant, but still outperforms others in that space.
- XLK (#5) remains in the improving quadrant, heading towards leading, a promising trajectory.
Daily RRG
Shifting to the daily RRG, we see some variations that support longer-term trends:
- XLY is rapidly moving back towards leading through the improving quadrant, reinforcing its weekly strength.
- XLF is losing some relative momentum but remains within the leading quadrant.
- XLC shows a strong trajectory back into leading, aligning with its weekly rotation.
- XLI remains in leading but is shedding some relative momentum.
- XLK, while in the lagging quadrant, is starting to curl upwards, bringing its daily tail in-line with the weekly rotation towards the leading quadrant.
Consumer Discretionary (XLY)
XLY is holding up remarkably well, establishing a new higher low of around $218 — a key support level.
Price action suggests a move toward the previous high of $240. Relative strength lines maintain a positive position, underscoring the sector’s dominance.
Financials (XLF)
The financials sector pushed to a new high this week, confirming its bullish condition.
A higher low is clearly in place, and the relative strength chart has bottomed out against former resistance. This setup suggests the RRG lines may turn up soon, imho.
Communication Services (XLC)
XLC is following through nicely after breaking out of a flag-like consolidation pattern.
The sector is now pushing to new highs, dragging relative strength and RRG lines higher and is maintaining a strong rhythm of higher highs and higher lows — a textbook uptrend.
Industrials (XLI)
While XLI remains within its rising channel and has moved away from support, its relative strength is less convincing — neutral at best. However, compared to other sectors, it’s in a relatively good position despite declining RRG lines.
Technology (XLK)
The “new kid on the block” in the top 5, XLK is still capped under the $240 resistance level within its rising channel. Its relative strength line is range-bound and moving towards the lower boundary. RRG lines are slowly picking up.
XLK’s position inside the top 5 seems more due to weakness in other sectors than its strength.
Portfolio Performance
The RRGV 1 portfolio ends the week with a 3.96% gain, outperforming the S&P 500’s 3.4% — an impressive 50 basis points of alpha. I’ll be updating the portfolio on Monday morning, switching out energy for technology based on opening prices.
Summary
While technology has reclaimed its top 5 spot, it’s crucial to recognize that this is partly due to weakness in other sectors rather than overwhelming tech strength. However, as the largest sector, XLK can significantly impact overall portfolio performance. Investors should watch for a potential breakout above $240, signaling further upside.
#StayAlert and have a great weekend. –Julius
As the FOMC prepared to announce its rate decision on Wednesday, the Financial Select Sector SPDR Fund (XLF), which had been steadily climbing since the end of 2023, was approaching a new record high. Moreover, the Fed’s decision held little surprise — its stance had been well-telegraphed in the weeks leading up to the announcement. Wall Street widely expected rates to remain unchanged.
Yet, as Jerome Powell spoke following the FOMC decision, XLF and the rest of the stock market declined. At the end of the day, XLF notched a gain, but one that barely scratched above its opening price.
In after-hours trading the next day, XLF quietly broke into all-time high territory, surpassing $51.40. Some investors might be asking whether they should have bought XLF at the breakout. To answer that, let’s start with a weekly chart to gain a broader perspective on XLF’s trajectory.
FIGURE 1. WEEKLY CHART OF XLF. Note how XLF has been trending steadily since late 2023. Chart source: StockCharts.com. For educational purposes.
XLF remained rangebound between just under $29 and $36 for almost a year and a half. During that period, it experienced two failed breakout attempts to the upside, followed by a lackluster retest. By the time XLF cleared the upper levels of the trading range (see blue dotted lines), more than 90% of S&P financial stocks were trading above their 200-period exponential moving average, as seen by the indicator in the bottom panel.
Let’s pause for a moment and discuss this indicator, which you can add this to your indicator window by selecting Price and typing in (!GT200XLF). This is a useful breadth indicator that tells you the percentage of stocks above a given moving average — in this case, the 200-period EMA. With more than 90% of S&P financial stocks trading above the 200-period EMA, the signal indicated a bullish level of internal strength that might have supported the case for buying the breakout when it finally occurred (see magenta rectangle).
Backup — Let’s Break Down XLF: The financial sector includes several industries. Since we’re discussing XLF, it’s important to mention that over 96% of the ETF is comprised of Financial Services, with the largest weighting going to bank stocks.
XLF rallied from the end of 2023 to the last months of 2024. After a brief pullback in the last two months of the year, XLF resumed its climb to its current levels.
Now let’s shift over to a daily chart.
FIGURE 2. DAILY CHART OF XLF. Will the index pull back or continue advancing into record-high territory?Chart source: StockCharts.com. For educational purposes.
XLF’s technical strength has been net bullish over the entire period represented on the chart, as seen by the StockCharts Technical Rank (SCTR) reading displayed in the top panel.
The Money Flow Index (MFI), which considers momentum and volume, indicates that buying pressure is steady while remaining below overbought conditions. This signals that XLF is not topping out. However, the candles over the last few sessions also show that conviction on either side of the fence, bullish or bearish, remains low. There’s a possibility of a stall or pullback, and if either materializes, you can expect a reversion to the middle Bollinger Band, which might also serve as a sound entry point should the fundamental context remain favorable (note how the price action over the last six months seems to have responded well to Bollinger Band levels).
At the Close
Add XLF to your ChartLists and watch the levels discussed above. If you somehow bought the initial breakout, which didn’t show much bullish conviction, look to the middle Bollinger Band as a potential support level. A close below $47, the most recent swing low, would invalidate the current rally.