When Leadership Is Clear, Do Less

Relative strength across copper and miners says the move isn’t done — but...

I keep getting asked about relative strength.

“What timeframe do you use?”
“What matters most?”
“How do you know when it’s real?”

The answer is simple:

Different timeframes matter for different reasons.

Short term relative strength helps you with entries.
Long term relative strength helps you define structural leadership.
But for swing/position trading?

The 3-month window is one of the most powerful tools you can use.

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Why 3 Month Relative Strength Matters

Meb Faber has talked about this extensively in his work on relative strength and momentum investing.

Intermediate-term momentum — roughly 3 to 12 months — is where trends tend to persist. Not days. Not weeks. Months.

Three months is long enough to filter out noise.
Short enough to catch new leadership early.
Long enough to show institutional participation.

It’s the sweet spot between trading and investing.

And when you look at the AAO Macro TrendFinder – 3 Month Movers, what do you see?

You see:

• Copper producers

• Aluminum

• Silver miners

• Uranium

• Tanker shipping

• Platinum

• Base metals across multiple geographies

This isn’t random.

This is capital rotation.

This is how you find new trades.
Or more importantly — this is how you confirm you’re positioned correctly.

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AAO Macro TrendFinder – 3 Month Movers

Look at that table.

The leadership isn’t tech.
It isn’t defensive yield.
It isn’t bonds.