Major news in the commodity markets this week: Crude oil just hit a fresh 2009 high. It's more fuel for the fire under small resource stocks.Longtime DailyWealth readers know we keep a close eye on the universe of small companies that explore for and produce resources like crude oil, uranium, copper, gold, and platinum. They're among the most explosive assets in the world. Rising commodity prices cause huge increases in their asset values and earnings power. Plus, investors love this "story" and often pile into this small sector with lots of money.
We track small resource companies with the Canadian Venture Index. We wrote them up as a sector with major rebound potential right at the index's bottom in mid-December. As scripted, the Venture is climbing along with the reflating of gold and energy prices... and just reached a new high this week.
We've stated it once and we will state it again: As precious metals and energy prices remain robust, this sector will crank out triple-digit winners like Detroit, er, Japan cranks out cars. Traders must be "up" on this market!
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