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Gold & stock market: investor tactics now

Commentaries & Views

  1. With India’s titanic physical market now switching from a price discount to a premium, the door is open for the end of gold’s healthy and graceful price reaction.

  2. Double-click to enlarge this daily chart.

  3. A beautiful bull wedge pattern has formed.  A week ago, I suggested gold would stall at $1480 minor resistance and an ensuing decline would complete a double bottom pattern.

  4. That has occurred, and now it’s time for investors to get ready for some serious upside action.

  5. Double-click to enlarge.  From both a weekly and daily chart perspective, gold looks magnificent. 

  6. On this weekly chart I’ve highlighted my proprietary “traffic light” signals.  There have only been five buy signals over the past twenty years!

  7. The compounding effect of following the Graceland traffic light signals has been spectacular, and the market is still on a full green light signal now.

  8. Investors who didn’t take the latest money-making signal should use the current pullback to get in on the action.  Momentum players should await the bull wedge upside breakout, and then buy.

  9. Crescat Capital’s yield inversion analysis is in-depth and should never be ignored.

  10. I’ve suggested America is at a time much like the late 1960s, when stagflation began to emerge and the performance of gold left stock market investors in the dust.  Crescat’s detailed yield curve analysis suggests something very similar to my scenario is happening right now. 

  11. Most of my new subscribers have been in the stock market for many years.  They now want to diversify their holdings with gold.  That’s a very wise move!

  12. Double-click to enlarge this swing trade stock market chart. 

  13. For all practical intents and investing purposes, it’s only US government propaganda and the Fed that keeps the hydrogen flowing into the stock market balloon.  Earnings are sinking.  GDP growth looks like a wet noodle, languishing in the sub 1% zone.

  14. As noted by the elite Crescat team, it’s only a matter of time before the stock market comes tumbling down.  My strategy is to own some core positions based on my weekly chart signals, but to increase focus on my swing trade signals.

  15. That’s because it’s only a matter of time before stagflationary embers become a fire.  The stock market hydrogen balloon could explode in a horrific way as that happens. 

  16. The bottom line is that only short-term traders will be able to get out with large profits intact before the next major meltdown takes all the profits away.

  17. Double-click to enlarge this US T-bond chart.

  18. The gold and T-bond charts are both bullish. A breakout from the drifting rectangle seems likely to occur at almost the same time as gold bursts out of its bull wedge pattern.

  19. Most Western governments can’t afford to let rates rise or their Ponzi scheme of borrowing ever-more money to enlarge their size and influence come to a fiery finish.

  20. Central banks claim they want more inflation, but they really don’t.  They are the enablers and promoters of deflation with their extreme low rate and QE policy, and they are doing it so the governments can keep expanding. 

  21. If the Fed, BOJ, and ECB really wanted inflation they would be buying enormous amounts of gold instead of buying T-bonds and the stock market.  

  22. The reality is that central banks are concerned that significant inflation is going to emerge, and then governments will act like dictators; the governments could pass “emergency” legislation to keep rates low.  That would unleash enormous monetary inflation and create a gold-buying frenzy.

  23. That’s coming, but as noted, America is probably only at a point like 1966 in the process (if the 1970s are used as an example).  A “big parabola” like occurred in 1979 is a long way off, but the good news is that gold is likely going hundreds of percent higher over the coming decade, even before the parabolic fun begins.

  24. Double-click to enlarge this bullish GOAU chart.  As with gold, there’s a double bottom in play within the bull wedge.  Stoploss enthusiasts can use the 14.90 area to place stops and limit risk.  From both a time and price perspective, it’s a decent entry point for investors.  It’s time for buy-side action, and I’m doing that this morning for myself and for the money I manage! 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.