Banks Dumped while Resources Spike

By Murray Dawes, Friday, 25 July 2025

Banks are selling off while resources rally. Is it time to short sell CBA? Murray answers that question and looks at the future facing metals stocks that are blasting off.

We are just a week away from Trumps 1 August deadline for tariff negotiations to wrap up.

By the look of things at the moment the market seems confident deals can be done, and the economy will rebound nicely once uncertainty is out of the way.

US stocks are hitting new all-time highs on a daily basis and daily, weekly and monthly trends are pointing up.

Trump has put a rocket under the beaten up future facing metals sector and Callum and I have been pointing out many possible opportunities in that space over the last few months.

But despite the general bullishness there has been some weakness showing up in certain areas.

Banks in particular have seen some stiff selling pressure over the last few weeks with some of that money finding its way into the large resource stocks such as BHP Group [ASX:BHP], Rio Tinto [ASX:RIO], and Fortescue [ASX:FMG].

With Commonwealth Bank of Australia [ASX:CBA] so clearly overvalued, we must ask the question whether now is the time to short sell the stock. I answer that question in the Closing Bell video below.

I also have a look at the US Dollar Index [TSV:DXY] which is looking weak with potentially a lot more downside to come. That will put a rocket under commodities and the Aussie dollar.

We finish today’s session looking at various stocks in the future facing metals space that are powering ahead, with potentially a lot more upside to come.

If you have made some money on the ideas we have been sharing with you and enjoy the show please click on the ‘YouTube’ text in the bottom right of the video and when you are in the YouTube version of Closing Bell give us a ‘like’.

Regards,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe

1 Comment

Inline Feedbacks

View all comments

Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

Murray’s Premium Subscriptions

Retirement Trader

The Company Who Cried Wolf
By Charlie Ormond

AI company Anthropic has been on the rooftops shouting about the threats of its upcoming model. Insiders have widely panned the move as a marketing ploy. So where are the risks?
The Pros Got Crushed… What That Means for You
By Murray Dawes

Markets have just ripped higher, with the S&P 500 surging 15% in less than two weeks. But beneath the surface, things aren’t nearly as strong as they look.
The Great Energy Pivot: Rewriting the Oil Trade [Part IV]
By James Cooper

In this final edition, we outline why controlling global oil could be the US’s last weapon in hanging onto its decades-long hegemony. Control the Oil. Control the World.

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.