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Far be it for us to indulge in hubris, nevertheless, with all humility we not only saw this risk on rally forming in early October but reiterated on many occasions, "be not dismayed by recent declines." "Commodities are not in a bubble." "Patience and Fortitude."

Recent action exemplifies the importance of not being trigger happy when it involves the commodity arena, especially precious metals, uranium and rare earths. Volatility can daunt even the most resolute of investors.

We are once again vindicated in sticking with the ebbs and flows of the resource arena which often contrive to misdirect, confuse and obfuscate the impatient investor. The eventual payouts are worth the swings as we look forward to halcyon profits.

What does this all mean for our patient subscribers? When many respected gray beards were calling the end of what they thought was a bubble in precious metals, uranium and rare earths, our obvious conclusion was that even experienced so called experts were calling it wrong. There are morals to be drawn here.

Adhere to the long term cyclical upswing in natural resources, specifically in gold (NYSEARCA:GDX), silver (NYSEARCA:SIL), copper (NYSEARCA:COPX), uranium (NYSEARCA:URA) and rare earth miners (NYSEARCA:REMX) represented by the ETFs. Breakouts occurring in 2012 are filling gaps to the upside which were created in 2011. Do not be dismayed of major corrections in the long range move upward of our chosen sectors. Downside gaps are in the process of being filled and are bullish moves. Do not be turned off by whipsaws often engineered by the speculators.

We are in the time interval of the first quarter, which is often a period of favorable seasonality. Hopefully, may this force be with us. There is a turbulent atmosphere pervading the world, wherein hard assets may be regarded as appropriate safe havens as banks are buying treasuries at a record pace.

Observe the convolutions of the Eurozone nations as they attempt to upright the various ships of state. On the other hand, we have just seen where Caterpillar (NYSE:CAT) is backlogged in its orders of mining machinery. In fact, Caterpillar in their quarterly report has stated that the demand for their machines represent a bullish and growing activity in commodity production. Note the concurrent breakout in rare earths and uranium despite any diversion caused by the European travails.

In conclusion, 2012 breakouts in gold, silver, rare earths and uranium are a welcome confirmation to our analysis and bullishness for precious metals. General equities have hit some resistance after making a powerful move since our October 4th buy signal.

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We are witnessing a rotation from treasuries into equities and the precious metals and natural resources arena as investors are realizing that the outcome of Europe's $1 trillion LTRO program may be hyper-inflationary. The S&P 500 is hitting resistance after a powerful upmove and we may see a rotation into undervalued commodities such as uranium and rare earths.

The uranium miners have been rallying as Rio Tinto (NYSE:RIO) entered the Athabasca Basin. The heavy rare earth miners are starting their breakout moves as well as Molycorp (NYSE:MCP) announces the $1.3 billion dollar acquisition of Neo Materials.

Source: Bullishness For Commodities Confirmed

Additional disclosure: I am long individual uranium and rare earth stocks.