Conclusion, Investment Implications, Strategy

The Invesco DB Precious Metals Fund (DBP) recently broke its Oct 2024 downtrend to indicate the resumption of its larger major uptrend amid monthly asset expansion and quarterly relative outperformance versus the S&P 500 (SPY).  Together, these factors establish favorable conditions for more outright strength and relative outperformance by DBP and other precious metals related assets.

DBP Breaking Out Higher On Asset Expansion And Relative Outperformance

The upper panel of Chart 1 below shows that the Invesco DB Precious Metals Fund (DBP) is in the midst of major and minor uptrends, according to its 200- and 50-day moving averages, and has recently risen above its Oct 30th downtrend line.  The middle panel shows that the total net assets invested in DBP (AUM) have been expanding on a 21-day monthly basis since Jan 16th.  Expanding assets indicate bullish conviction in higher prices.  The lower panel shows that DBP has been outperforming the S&P 500 on a 63-day quarterly basis since Jan 10th.  

As long as these three conditions remain intact, DBP is likely to continue moving higher in the weeks ahead.

Chart 1

Current Sector & Industry Group Ideas

Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.

Table 1

Click the table to make it larger