Maybe We Are Seeing a Bottom

... in commodities and commodity stocks that is. I was feeling pretty bearish today until I wiped the jet-lagged sleep from my eyes to look at the charts of stocks in Red-Hot Canadian Small-Caps and Red-Hot Resources.

Damn, but it looks like we're seeing some bottoming action right now. Take a look at this chart of Fronteer Development Group, a core portfolio holding in Red-Hot Resources ...To be sure, the coast isn't clear. I expect FRG to go back and test those lows over the next couple weeks. But this is typical of a bottom.

Fronteer is a gold/uranium stock. Many speakers at the Vancouver Resource Investment Conference were very bearish on the broad market -- especially banks -- but still see tremendous upside for resources including gold, silver and oil later in the year. That's kind of a disconnect for me. As my old trader friend Charlie Belida used to say, "When the paddy wagon comes along, it takes the good girls downtown along with the bad."

But if US Global Funds chief Frank Holmes is right, an infrastructure building boom in China, India and other developing countries will take up all the slack in commodities from a US recession and more.

It's very interesting. And it certainly gives me some names to play if we get a decent rally.

Check out my new gold and energy blog at MoneyAndMarkets.com