Petra Hess of PetraPicks.com says that battery makers are trying to find ways to use dramatically more nickel in batteries, and that gives the metal the potential to follow lithium as a hot, technology-driven commodity. Despite that growing demand and potential, Hess noted that nickel is priced at the same level it was at in 2009, though it is about to break through its 200-weekly moving average. If it breaks through, she will look to play Vale SA (VALE) if it gets back over its 50-day moving average mark at $10.52. If Vale hits that mark, Hess will go long the stock and stay with it for as long as it stays above the 50-day line. Hess noted that she is using VALE rather than the iPath Bloomberg Nickel ETN (JJN) because the latter is not particularly liquid — particularly compared to the individual stock — and that she believes Vale will lead the index on the rise she sees coming.
Petra Hess runs PetraPicks.com and is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs. At the time this interview was taped on Nov. 13, she had no shares, options or open orders in either VALE or JJN, though she was watching the stock as described here. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.