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November 21, 2024

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Sector Rotation Suggests Offense Over Defense

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Institutional investors tend to focus heavily on relative strength; after all, this is essentially how they are evaluated in their performance as money managers! In this article, let’s review three ways to analyze relative strength and what these charts are telling us about sector rotation as we progress through Q4.

Relative Strength Trends Show Clear Winners in Q4

I like to group the 11 S&P 500 sectors into three important buckets based on their general tendencies: growth sectors, value sectors, and defensive sectors. Let’s focus in on the relative performance of the value sectors, with each line representing the ratio of the sector ETF vs. the S&P 500 ETF (SPY).

Two of these four sectors stand out as strengthening in the month of November, specifically the financial and energy sectors. Both of these sectors are expected to benefit from a Trump administration. Banks, it’s assumed, will be facing less regulatory pressure and also a steepening yield curve. For energy, it’s the assumption that with less support for renewable energy policies, oil and gas companies could stand to thrive going forward.

As my friend and fellow StockCharts commentator Tom Bowley once explained, “If you want to outperform the S&P 500, you need to own things that are outperforming the S&P 500.” So, by focusing on sectors that are showing stronger relative strength, we have the opportunity to outperform our passive benchmarks.

Offense vs. Defense Ratio Still Favoring Offense

I also love to use ratio analysis to compare sectors to each other, as we can then start to infer what big institutions are doing with their capital as they rotate between the 11 economic sectors. Let’s look at one of my favorite ratios, which I call the “offense vs. defense” ratio.

The top panel is the ratio of Consumer Discretionary (XLY) versus Consumer Staples (XLP), while the bottom panel uses equal-weighted ETFs for those same sectors (RSPD and RSPS). This analysis was inspired from conversations years ago with Bill Doane, my Fidelity predecessor who ran the Technical Research team in the 1970s. We are basically comparing “things you want” vs. “things you need”, with the idea that, when conditions are good, consumers tend to spend more money on discretionary purchases.

We can see in this chart that offense has been outperforming defense fairly consistently since early August. And if there’s one thing I’ve learned in 24 years of analyzing charts, it’s to assume that a trend is continuing until it doesn’t! So this chart certainly suggests broad market strength going into year-end 2024.

Relative Rotation Graph Indicates Resurgence in Key Sectors

No discussion of sector rotation would be complete without a nod to the GOAT of visualizing sector rotation, Julius de Kempenaer. His RRG charts have been an essential part of my toolkit for many years, and I’m thrilled that we now have an upgraded version on the StockCharts platform with which to continue our analysis.

I’ve highlighted the two consumer sectors, which we can see support our earlier comments on offense over defense.  The XLY is trending up and to the right in the Leading quadrant, and the XLP is moving down and to the left within the Lagging quadrant.

I’ve also selected one other comparison, which is one I’ll be watching closely as we head into 2025. Technology, driven by the strength of software and semiconductors, is currently in the Improving quadrant. Utilities, which has traditionally been considered as a defensive sector, sits in the Weakening quadrant.

If and when these relative trends would begin to reverse, that could and will indicate more defensive positioning than we’ve seen at all in 2024. But until and unless we see that sort of defensive rotation, my sector analysis tells me this market is poised for further strength.

RR#6,

Dave

P.S. Ready to upgrade your investment process? Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Be ALERT for Warning Signs – S&P 500 Downturn

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In this exclusive StockCharts video, Joe goes into detail on the S&P 500 ETF (SPY), sharing why using MACD and ADX together can be beneficial — especially in the current environment. He touches on Sentiment, Volatility and Momentum, pointing to reasons why we need to be on alert at this time for signs of a downturn. Joe covers the QQQ and IWM since both are at critical levels right now. Finally, he goes through the symbol requests that came through this week, including AMZN, CVNA, and more.

This video was originally published on November 20, 2024. Click this link to watch on StockCharts TV.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

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Is the USD Setting Up for a Perfect Rally?

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After the election, things have hardly settled in the world. New developments in the Ukraine-Russian conflict and the Middle East are still volatile. Worst of all, I am in Redmond, WA this week, where last night’s storm caused a massive power outage in this region.

Needless to say, producing electronic content is a challenge at the moment

But I found a small pocket where things seem to operate decently, so I’ll give it a try.

When market conditions become cloudy, I always like to step back and zoom out to see the big picture.

Weekly Asset Class Rotation

Using Relative Rotation Graphs, I do that, bringing up an RRG for asset classes as plotted at the top of this article. This is a weekly RRG, and the rotations seem pretty straightforward. (Note: I have left out BTC as it is powering way up into the leading quadrant and living a life of its own.) Stocks are the only asset class inside the leading quadrant, and they are on a decent RRG-Heading, suggesting that more relative strength lies ahead.

On the opposite trajectory, we find the three fixed-income-related asset classes in this universe: government bonds, Corporate bonds, and High-Yield bonds. All three are traveling on a southwestern heading and are moving deeper into the lagging quadrant. This suggests further relative weakness for this group in the coming weeks.

We find commodity ETFs and the Dollar Index inside the improving quadrant. DJP and GSG are in the improving quadrant while still in the middle of their respective trading ranges, both in price and relative.

The Dollar index, on the other hand, is interesting, having reached the top of a broad trading range after a significant rally that started at the bottom of that range back in September. It is now pushing against heavy overhead resistance.

Zooming in on the Daily Timeframe

Things are getting more interesting when I zoom in on the daily timeframe. This RRG is plotted above.

A few observations in combination with the rotations as seen on the weekly version. In the daily timeframe, stocks also head deeper into the leading quadrant on a strong RRG heading. This happens after a leading-weakening-leading rotation, which means it is a reasonably reliable start for a new up-leg in the already established relative uptrend. Conversely, the fixed-income asset classes confirm their weaker rotation back into the lagging quadrant after a lagging-improving-lagging rotation.

Overall, the preference for stocks over bonds is firmly shown based on RRG. Commodities are heading further into the lagging quadrant on this daily RRG, which tells me that the positive rotation on a weekly basis might be slowing down soon.

$USD Close to Breaking from Broad Range

This leaves $USD with an interesting rotation. The long tail traveling upward inside the improving quadrant on the weekly is getting support from the leading-weakening-leading rotation that is developing on the daily RRG.

On the price chart, $USD is very close to overhead resistance, and, with its current strength, there is a fair chance of breaking it upward. When that happens, $USD looks set for a strong follow-through that could reach the levels of the previous highs around 114. This target can be calculated by adding the range’s height, around 7 points, to the breakout level, around 107.

Stocks vs. Bonds

SPY continues to make higher highs and lower lows, confirming its uptrend even though negative divergence is still present and weaker breadth data (not shown here). However, at the end of the day, you can only trade SPY.

There was a nice rally in bonds, pushing yields down, but the decline of the 23.50 highs seems to be breaking the rising trendline.

The primary relative trend for GOVT vs. VBINX has been down for a long time, and the recent uptick seems to have ended, once again with a high for the JdK RS-Ratio line below 100, resulting in another lagging-improving-lagging rotation, the fifth since late 2022. So far, the rise in yields has not been damaging to stocks, and as a result, the stock-bond ratio has again accelerated in favor of stocks.

Overall, the preference for stocks over bonds continues while $USD seems to be setting up for a perfect rally!!

#StayAlert –Julius

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AppLovin’s 1,303% Rise: The Hidden Power of the SCTR Report

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How do you find the next big stock before it gains the investing public’s attention?

It’s tricky, but there are only two ways to spot a so-called “hot stock” before the social buzz. One is to scour financial reports and forum chatter to see what Wall Street insiders might be looking at before the general public catches. Another is to use various scans to trace the smart money’s tracks before the news gets out.

Alternatively, you could do both.

(As far as the latter—scanning for stocks exhibiting technical strength—perhaps it’s something you should be doing daily, as you have plenty of tools to scan every sector and stock on the market rapidly.)

Tuesday’s Scan After the Close

On Tuesday, I did an after-market scan to prepare for the following day’s trading session. Pulling up the StockCharts Sample Scan Library from the Charts & Tools menu, I ran a scan for New 52-week Highs and categorized the Symbols by the StockChartsTechnicalRank (SCTR) score.

FIGURE 1. NEW 52-WEEK HIGHS SCAN RESULTS. AppLovin is at the top when sorted by SCTR scores.Image source: StockCharts.com. For educational purposes.

The mobile marketing tech company AppLovin (APP) had the highest SCTR score and a new 52-week high. I realized that APP was also on the SCTR Top 10 report, which is visible on the SCTR Reports Dashboard panel.

FIGURE 2. SCTR REPORT TOP 10 LIST. APP been on this list for a while but its move to the top position is worth noting.Image source: StockCharts.com. For educational purposes.

If you’ve been following the SCTR Reports from time to time, you might have noticed that APP has been occupying the top 10 list for quite some time. APP, though not the most popular stock (perhaps until now), has been abuzz among institutional and tech investors for quite some time. It makes you wonder what other scans APP might have shown up on.

In the Symbol Summary tool, here’s what came up Tuesday afternoon.

FIGURE 3. LIST OF SCANS ON SYMBOL SUMMARY THAT INCLUDED APP. It’s time to do a deeper dive.Image source: StockCharts.com. For educational purposes.

At the least, APP’s appearance on several scans tells you it’s time to do a deeper top-down dive on the stock. Let’s start with a weekly chart to get a big-picture view of APP’s price history.

FIGURE 4. WEEKLY CHART OF APP. The stock price had a parabolic upside move.Chart source: StockCharts.com. For educational purposes.

That’s a jaw-dropping 1,303% jump (see percent line measurement in the chart). And it begs two questions: Were there early signs to get into the stock when APP was just at $30, and is it now just a FOMO trade, or is there still room for growth?

Starting with the first question, the earliest technical indication was in May 2023 (see blue dotted vertical line) when two things coincided (green circles highlight each event):

  • The Chaikin Money Flow (CMF) broke through the zero line, indicating that buyers controlled the market.
  • The SCTR line shot up to around 99, well above the bullish 90 line.

At this point, you’re probably wondering if there’s still room for APP valuations to grow or if it’s now just a FOMO trade. Here, we’ll shift to a daily chart of APP to take a closer look.

FIGURE 5. DAILY CHART OF APP. There are multiple levels of support for the looming pullback.Chart source: StockCharts.com. For educational purposes.

APP’s runaway gap followed a stellar earnings report. The divergence between the CMF and the On Balance Volume (OBV) lines shows a potential decrease in institutional buying (represented by the CMF) versus retail FOMO (using OBV as a proxy). The Relative Strength Index (RSI) is clearly in overbought territory, but APP’s price action also shows how the RSI can sustain extreme levels for an extended period of time.

In the daily chart, three indicators show potential convergence at support levels. The Ichimoku Cloud provides a dynamic support range that shifts with price action, aligning with the quadrant lines, especially the third quadrant just below the 50% retracement. Keep in mind that the second and third quadrants typically signal bullish levels during a pullback. Lastly, notice the Bollinger Bands, where the middle band also falls within the third quadrant.

If APP starts pulling back, as it seems likely, and you’re bullish on the stock, watch these levels closely. How the price reacts at these points can guide you in making a more informed decision about when to take action.

At the Close

The steps to spotting a potential breakout stock like AppLovin highlight the importance of analysis using differentiated tools to uncover hidden opportunities. From initial scans to spot technical strength to deep dives using SCTR rankings and Symbol Summary insights, the journey of discovery relies on methodical steps. Whether you’re looking to catch the next big move or planning entry points during a pullback, the takeaway is clear: consistent, multi-layered scanning and analysis is the key to finding market gems early on.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Syntheia Rings the Opening Bell on the Canadian Securities Exchange

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Syntheia Corp. (‘Syntheia’ or the ‘Company’) (Syntheia.ai), CSE SYAI, a Canadian leader in conversational AI, is pleased to announce that the Company’s leadership team rang the bell to open the market in collaboration with the Canadian Securities Exchange to celebrate its successful listing under the symbol ‘SYAI’.

‘ We look forward to great success through our partnership with the CSE as we commercially launch our conversational AI to the market. On behalf of the Company, I would like to thank everyone who has made this milestone happen, ‘ commented Tony Di Benedetto, Chief Executive Officer at Syntheia.

The opening bell ceremony can be viewed on CSE TV here .

For more information, visit Syntheia.ai

About Syntheia

Syntheia is an artificial intelligence technology company which is developing and commercializing proprietary algorithms to deliver human-like conversations. Our SaaS platform offers conversational AI solutions for both enterprise and small-medium business customers globally

Cautionary Statement

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release contains certain ‘forward-looking information’ within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as ‘plan’, ‘expect’, ‘project’, ‘intend’, ‘believe’, ‘anticipate’, ‘estimate’, ‘may’, ‘will’, ‘would’, ‘potential’, ‘proposed’ and other similar words, or statements that certain events or conditions ‘may’ or ‘will’ occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Forward-looking statements in this news release include, but are not limited to the expected launch of Syntheia’s platform. Readers are cautioned that forward‐looking information is not based on historical facts but instead reflects the Company’s management’s expectations, estimates or projections concerning the business of the Company’s future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made.

Although the Company believes that the expectations reflected in such forward‐looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Please refer to the Company’s listing statement available on SEDAR+ for a list of risks and key factors that could cause actual results to differ materially from those projected in the forward‐looking information. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward‐looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.

Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241120927927/en/

Tony Di Benedetto
Chief Executive Officer
Tel: (844) 796-8434

News Provided by Business Wire via QuoteMedia

This post appeared first on investingnews.com

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NorthStar Gaming to Host Q3 Earnings Webinar on December 3rd

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NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) (‘NorthStar’ or the ‘Company’) announces that on December 3rd at 11am ET, the Company’s CEO, Michael Moskowitz, will be presenting the Company’s third quarter earnings results and an update on current operations and upcoming milestones. The Company expects to announce its third quarter 2024 financial results on November 27, 2024. NorthStar invites all investors and other interested parties to register for the webinar at the link below.

Date: Tuesday, December 3rd, 2024
Time: 11am ET
Register: Webinar Registration

HAVE QUESTIONS? Management will be available to answer your questions following the presentation on the webinar platform. You may submit your question(s) beforehand in the registration form linked above.

About NorthStar Gaming Holdings Inc.

NorthStar proudly owns and operates NorthStar Bets, a Canadian-born casino and sportsbook platform that delivers a premium, distinctly local gaming experience. Designed with high-stakes players in mind, NorthStar Bets Casino offers a curated selection of the most popular games, ensuring an elevated user experience. Our sportsbook stands out with its exclusive Sports Insights feature, seamlessly integrating betting guidance, stats, and scores, all tailored to meet the expectations of a premium audience.

As a Canadian company, NorthStar is uniquely positioned to cater to customers who seek a high-quality product and an exceptional level of personalized service, setting a new standard in the industry. NorthStar is committed to operating at the highest level of responsible gaming standards.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Cautionary Note Regarding Forward-Looking Information and Statements

This communication contains ‘forward-looking information’ within the meaning of applicable securities laws in Canada (‘forward-looking statements’), including without limitation, statements with respect to the following: expected performance of the Company’s business, expected benefits of the introduction of product innovations, and player engagement levels. The foregoing are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and allowing investors and others to get a better understanding of the Company’s anticipated financial position, results of operations, and operating environment. Often, but not always, forward-looking statements can be identified by the use of words such as ‘plans’, ‘expects’, ‘is expected’, ‘budget’, ‘scheduled’, ‘estimates’, ‘continues’, ‘forecasts’, ‘projects’, ‘predicts’, ‘intends’, ‘anticipates’ or ‘believes’, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results ‘may’, ‘could’, ‘would’, ‘should’, ‘might’ or ‘will’ be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. This forward-looking information is based on management’s opinions, estimates and assumptions that, while considered by NorthStar to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by such forward- looking information. Such factors include, among others, the following: risks related to the Company’s business and financial position; risks associated with general economic conditions; adverse industry risks; future legislative and regulatory developments; the ability of the Company to implement its business strategies; and those factors discussed in greater detail under the ‘Risk Factors’ section of the Company’s most recent annual information form, which is available under NorthStar’s profile on SEDAR+ at www.sedarplus.com. Many of these risks are beyond the Company’s control.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents NorthStar’s expectations as of the date specified herein, and are subject to change after such date. However, the Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.

For further information:

Company Contact:
Corey Goodman
Chief Development Officer
647-530-2387
investorrelations@northstargaming.ca

Investor Relations:
RB Milestone Group LLC (RBMG)
Northstar@rbmilestone.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230815

News Provided by Newsfile via QuoteMedia

This post appeared first on investingnews.com

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Sarama Announces Equity Placement of up to A$2M and Issue of Equity for Debt

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Sarama Resources Ltd. (“Sarama” or the “Company”) (ASX:SRR, TSXV:SWA) is pleased to announce it has received binding commitments to undertake a A$2 million (before costs) equity placement (the “Placement”).

Funds raised will be used to undertake exploration activities, general administration and for general working capital purposes. The Placement was well supported by existing shareholders and professional and sophisticated investors.

The Placement will comprise the issue of up to 66,666,666 Chess Depository Interests (“CDIs”) at an issue price of A$0.03 per CDI to raise gross proceeds of up to A$2 million. The issue price represents a ~15% discount to Sarama’s 10-day VWAP and a 21% discount to the last traded CDI price on the Australian Securities Exchange (“ASX”) on Monday, 18 November 2024 of A$0.038 and a ~24% discount to Sarama’s 10-day VWAP and a 7% discount to the last traded share price on the TSX Venture Exchange (“TSXV”) on Friday, 15 November 2024 of C$0.03. Each new CDI issued under the Placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in 1 common share of the Company. The Placement CDIs will be issued pursuant to the shareholder approval obtained at the annual general meeting.

Subject to the receipt of shareholder approval, Sarama will issue 1 free attaching unlisted option (“Placement Option”) for every 4 new CDIs issued pursuant to the Placement. Each Placement Option will be exercisable at A$0.09 and will expire on 30 November 2028.

Australian resources brokers, Ventnor Securities Pty Ltd and RM Capital will act as Advisor and Lead Manager for the Placement and will receive up to 14,000,000 broker options, depending on quantum of funds raised, (“Broker Options”) at an exercise price of A$0.09 each and expiring on 30 November 2028. Ventnor Securities Pty Ltd will also receive a capital raising fee of 6% of funds raised. The issue of the Broker Options is subject to shareholder approval.

The Placement is comprised of two tranches:

  • Tranche 1 consists of 66,666,666 new CDIs which will be issued pursuant to the approval granted by shareholders at the annual general meeting held on 11 September 2024. The Company expects to complete allotment of the new CDIs under Tranche 1 by 27 November 2024.
  • Tranche 2 consists of up to 16,666,666 Placement Options and up to 14,000,000 Broker Options which are subject to shareholder approval at a special meeting of shareholders anticipated to be held in late January 2025 (“Special Meeting”). No funds will be received from Tranche 2.

The Placement remains subject to the approval of the TSXV.

Members of Sarama’s Board and Management do not intend to subscribe for any CDIs in the Placement, however concurrent with the Placement the Company’s executives and non-executive directors have agreed to receive a portion of their deferred salaries and director fees, in an aggregate amount of A$393,981.18 in common shares or CDIs of the Company.

In September 2023, the Company’s executives and non-executive directors agreed to suspend the payment of salaries and fees to ensure the Company had sufficient financial resources to work through the period of uncertainty created by the illegal withdrawal of the Company’s rights to the Tankoro 2 exploration permit in August 2023.

The Company intends to issue shares (CDIs) and warrants (options) on the same terms as the Placement in part settlement of deferred executive salaries and director fees, subject to the ASX Listing Rules and the prior approval of the TSXV.

Click here for the full ASX Release

This post appeared first on investingnews.com

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How to Invest in Tin Stocks (Updated 2024)

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Tin has a long history as a key metal in global economic growth.

Alloyed with copper to make bronze, tin is recognized as one of the seven metals of antiquity. Today, the critical meta is ubiquitous in advanced technologies such as electric vehicles, smartphones, Internet of Things (IoT) devices, and artificial intelligence chips.

In this article

    What is tin?

    Tin is a silvery-white metal that is mainly found in the mineral cassiterite contained in alluvial deposits. Tin’s symbol on the periodic table of elements is Sn.

    The metal can be isolated by reduction methods, which involve the removal of the oxygen molecules, with coal or coke in a smelting furnace. The result is a malleable and ductile metal that is not easily oxidized in air. It’s also lightweight, durable and fairly resistant to corrosion.

    What is tin used for?

    Tin’s positive characteristics mean it has a slew of important uses. Tin is primarily used to coat other metals due to its ability to retain a high polish and prevent corrosion. Tin is also an alloy metal used in soldering and the production of rare earths superconducting magnets.

    Today the electronics industry is the sector to watch for investors who are keeping an eye on tin. The metal is used in semiconductor circuit-board soldering, an application that accounts for about half of global tin consumption. As electronics become more advanced, they require more semiconductor chips, and hence, more tin. AI chips are especially complex and represent an emerging source of increased demand for the metal.

    ‘The development of AI equipment requires the use of specialized semiconductor chips — graphic processing units (GPUs) — which use tin as both a solder and as anti-corrosion protection within circuit boards,’ according to Fastmarkets.

    Tin supply and demand trends

    The tin market has been in deficit for the past decade, and supply is expected to remain constrained as demand rises. This overhang alongside surging electronics demand has supported tin prices in recent years.

    In addition, signs of rebounding Chinese demand and the need for tin’s soldering properties in infrastructure and AI chips are prompting bullish sentiment for the metal.

    In 2024’s second quarter, these factors helped the tin price hit a two year high when it moved above US$35,000 per metric ton (MT).

    Those interested in tin investing should pay attention to tin inventory changes on the London Metal Exchange (LME), as this offers insight on tin market developments. As the bullish story for tin developed at the start of 2024, speculative buying increased on the LME. This resulted in headline tin stock levels on the exchange dropping by 46 percent between the beginning of 2024 and mid-April, coinciding with the two year price high for the metal.

    Of course, supply is also a big factor, and keeping an eye on supply disruptions out of important tin-producing jurisdictions is also key. Tin supply constraints from delays in export licensing in Indonesia and mining disruptions at Myanmar’s Man Maw mine contributed to the high prices seen earlier this year.

    Indonesia and Myanmar are two of the biggest tin-producing countries, with output of 52,000 MT and 54,000 MT respectively. The only country with higher output in 2023 was China, the world’s top tin-producing country with output of 68,000 metric tons. Peru and the Democratic Republic of Congo (DRC) rounded out the top five with 23,000 MT and 19,000 MT, respectively.

    Unsurprisingly, the world’s top tin-producing companies can be found in these countries. China’s Yunnan Tin (SZSE:000960), Peru-based private company Minsur, Indonesia’s PT Timah (IDX:TINS) and Malaysia’s Malaysia Smelting (SGX:NPW) are a few of the largest producers.

    Another factor impacting supply is escalating violence in the DRC. Like tungsten, tantalum and gold, tin is a conflict mineral, and armed groups in the DRC earn hundreds of millions of dollars every year by trading these minerals.

    Currently, the Dodd-Frank Act in the US requires public companies that source minerals from the DRC to produce independently audited reports about the ownership and origin of these mined commodities. these documents must be provided to the US Securities and Exchange Commission.

    How to invest in tin?

    As mentioned, investing in tin is becoming more and more appealing as demand for the metal grows. Tin investing can be done by buying shares of tin-focused companies and tin exchange-traded funds (ETFs) as well by taking positions in tin futures.

    Tin stocks

    Alphamin Resources (TSXV:AFM,OTC Pink:AFMJF).
    Alphamin Resources is a low-cost tin concentrate producer that has rapidly ramped up its production capacity. It operates the Bisie tin complex in the DRC, which includes the high-grade Mpama North tin mine and the newly operational Mpama South underground tin mine and concentrate plant. This tin stock also pays a dividend to shareholders twice per year.

    Cornish Metals (TSXV:CUSN,LSE:CUSN)
    UK-based Cornish Metals’ flagship asset is the advanced-stage South Crofty tin project in Southwest England. It has existing mine infrastructure in place, as well as an active mine permit. An April 2024 preliminary economic assessment (PEA) for South Crofty shows a base case after-tax net present value of US$201 million and an internal rate of return of 29.8 percent.

    Elementos ( ASX:ELT)
    Elementos owns two tin projects: the Cleveland tin project in Tasmania, Australia, and the Oropesa project in Spain. The company is on track to complete a definitive feasibility study for Oropesa by Q1 2025 and is aiming to bring the project into commercial production by Q4 2027.

    Eloro Resources ( TSX:ELO,OTCQX:ELRRF)
    Eloro Resources has a portfolio of gold and base-metal properties in Bolivia, Peru and Canada. The company’s main focus is the Iska Iska project, a notable silver-tin polymetallic porphyry-epithermal complex in Southern Bolivia’s tin belt. The company is currently working on a PEA for the project, and has the option to acquire a 100 percent interest in it.

    Metals X (ASX:MLX,OTC Pink:MLXEF)
    Metals X has a 50 percent stake in Renison, Australia’s largest tin-producing mine. Located in Tasmania, the mine produced 9,532 MT of tin in 2023. The company also holds a 22.45 percent in LSE-listed First Tin’s (LSE:1SN) Taronga tin project in Australia.

    Stellar Resources (ASX:SRZ)
    Stellar Resources is developing its high-grade Heemskirk tin project in Western Tasmania. The company plans to power the project via renewable energy sources, including hydro and wind. A 2019 scoping study for Heemskirk highlights a 350,000 MT per annum underground mine and an on-site processing plant.

    Tincorp Metals (TSXV:TINUS,OTCQX:TINFF)
    Tincorp Metals has a portfolio of exploration-stage projects in Bolivia and Canada. The company has two tin-focused projects in Bolivia’s tin belt: the SF Tin project and the Porvenir project. Both properties also host zinc and silver mineralization.

    Tinka Resources (TSXV:TK,OTCQB:TKRFF)
    Tinka Resources’ flagship property is its 100 percent owned Ayawilca zinc-silver-tin project in Central Peru. The project’s Tin Zone has an estimated indicated mineral resource of 1.4 million MT grading 0.72 percent tin and an inferred mineral resource of 12.7 million MT grading 0.76 percent tin. The company released an updated PEA for the project in February 2024.

    Tin futures

    Those wishing to begin tin investing may want to consider tin futures, a derivative instrument tied directly to the price of the actual metal, are another option for those interested in aluminum investing. Futures are a financial contract between an investor and a seller. The investor agrees to purchase an asset from the seller at an agreed-upon price based on a date set in the future.

    Rather than intending to take possession of the material asset, investors speculating in the futures market are instead making bets on whether the price of a particular commodity will rise or fall in the near future.

    For example, if you buy a tin futures contract believing the price of metal is set to rise, and your prediction proves correct, you could gain a return on your investment by selling the now more valuable futures contract before it expires. However, be advised that trading futures contracts is not for the novice investor.

    Traded under the code SN, an LME Tin futures contract is for 5 metric tons with contract pricing in US dollars per MT. Clearable currencies include the US dollar, yen, pound and euro.

    Tin ETFs

    There is only one tin-focused ETF available on Western exchanges, the WisdomTree Tin (LSE:TINM) ETF. Listed on the LSE, the WisdomTree Tin fund is an exchange-traded commodity designed to give investors total return exposure to tin futures. The fund tracks the Bloomberg Tin Subindex plus a collateral return.

    Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

    This post appeared first on investingnews.com

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    Australia tables bill to limit under-16s from using social media with tech companies facing huge fines

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    The Australian government is threatening multimillion dollar fines for social media companies that breach a proposed ban on children under 16 from using their service.

    Communications Minister Michelle Rowland introduced an amendment to the Online Safety Act in parliament on Thursday, which the government has pitched as “world-leading social media reform.”

    “The Albanese Government is introducing world leading legislation to establish 16 as the minimum age for access to social media,” Rowland said in a statement.

    “This reform is about protecting young people and letting parents know we’ve got their backs,” she added.

    The legislation includes financial penalties of up to 50 million Australian dollars ($32.5 million) for companies found not to have taken “reasonable steps to prevent age-restricted users having accounts.”

    The ban is expected apply to social media services including TikTok, X, Instagram and Snapchat, though a list of banned services has not been released.

    The legislation has bipartisan support and if passed would come into effect in one year.

    “The legislation places the onus on social media platforms, not parents or children, to ensure protections are in place,” Rowland said. “Ultimately, this is about supporting a safer and healthier online environment for young Australians.”

    The legislation follows several high-profile cases of children taking their own lives citing online bullying, and complaints from parents about the pressure their children face to be online.

    Many parents and pro-ban campaigners have lauded the bill as a long overdue measure to impose accountability on tech companies for tools Australian children use online.

    However, critics say the proposed ban is a blunt instrument that will reduce teens’ access to support networks and create greater risks for those who flout the ban.

    Both sides agree about the risks of children spending too much time online, and the need for tech companies to do more to safeguard their products.

    The Australia government’s also commissioned the UK consortium Age Check Certification Scheme to trial age verification technology, to aid efforts to keep children off social media platforms.

    And it’s proposed a “digital duty of care” on providers to “keep users safe and help prevent online harms.” Similar agreements have been introduced elsewhere that allow users to complain and for authorities to take action.

    This post appeared first on cnn.com

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    Indonesia to return death-row drug convict to Philippines after yearslong appeal for mercy

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    Philippine President Ferdinand Marcos Jr. said Wednesday that a deal has been reached for Indonesia to send home a Filipino death-row drug convict who was nearly executed by firing squad but got a reprieve due to years of pleadings from Manila.

    Marcos thanked Indonesian President Prabowo Subianto and his government for granting a longstanding Philippine request for Mary Jane Veloso to be brought back home to serve her sentence in her country.

    “Mary Jane Veloso is coming home,” Marcos said in a statement. “Arrested in 2010 on drug trafficking charges and sentenced to death, Mary Jane’s case has been a long and difficult journey.”

    It was not immediately clear when Veloso would be flown back to the Philippines, but Marcos said he looked forward to welcoming her home.

    Indonesia’s Coordinating Minister for Law, Human Rights and Immigration, Yusril Ihza Mahendra, confirmed that Subianto has given his approval for Veloso’s return to the Philippines. That may happen in December, as long as conditions were met, including her continued detention in her country as part of the Indonesian court’s sentence.

    Philippine Foreign Undersecretary Eduardo de Vega said at a news conference in Manila that Filipino authorities would discuss the legal terms of Veloso’s transfer with their Indonesian counterparts.

    The Indonesian government has asked the Department of Justice in Manila to formally request Veloso’s transfer back to the Philippines, Justice Department spokesperson Mico Clavano said.

    The decision, Marcos said, “is a reflection of the depth our nation’s partnership with Indonesia — united in a shared commitment to justice and compassion.”

    Veloso’s transfer would remove the possibility of her facing an execution because the Philippines, Asia’s largest Roman Catholic nation, has long abolished the death penalty.

    In 2015, Indonesian authorities moved Veloso to an island prison where she and eight other drug convicts were scheduled to be executed by firing squad despite objections from the convicts’ home countries, including Australia, Brazil, France, Ghana and Nigeria.

    Indonesia executed the eight other convicts.

    Veloso’s case has caused a public outcry in the Philippines, where her family and supporters contend she is innocent and was unaware that 2.6 kilograms (5.7 pounds) of heroin was concealed in her suitcase. The drugs were discovered when she entered Indonesia.

    Veloso traveled to Indonesia in 2010 where her godsister reportedly told her a job as a domestic worker awaited her. Her godsister also allegedly provided the suitcase where the prohibited drugs were found.

    Philippine authorities had filed criminal complaints, including for human trafficking, against illegal Filipino recruiters who arranged for Veloso to work in Indonesia, Clavano said. She added that she would serve as a crucial witness in the trial of the suspects when she returns.

    That Philippine case helped convince Indonesian authorities to delay Veloso’s execution and eventually consider her transfer back to her country, Clavano said.

    Marcos said Veloso’s story resonated with many in the Philippines, as “a mother trapped by the grip of poverty, who made one desperate choice that altered the course of her life.”

    “While she was held accountable under Indonesian law, she remains a victim of her circumstances,” Marcos said.

    The Philippines has been a global source of manual labor, including many impoverished women who abandon their families for higher-paying jobs and better opportunities abroad. Alarming abuse, especially of Filipina house helpers, has prompted Philippine authorities to impose restrictions and safeguards but many continue to be exploited.

    At least 59 Filipinos around the world face the death penalty mostly for drug and murder convictions, the Department of Foreign Affairs in Manila said.

    This post appeared first on cnn.com

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