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A tech wreck & gold green shoots

Commentaries & Views

  1. The powerful sell signal for the Nasdaq that I issued in February has been followed by a disturbing "tech wreck" in the US stock market.

  2. Double-click to enlarge this QQQ ETF chart. 

  3. Trendlines are being tested, and an important one has failed.  There is some support at the current price of $300.

  4. Eager "dip buyers" may want to consider waiting for my 10,100 moving average series to flash a fresh buy signal before plunging back into the market… with anything resembling size.

  5. What about gold?  Well, most governments prepare for nothing in advance.  They quickly spend all the money they extort via income tax and then use debt and fiat photocopier machines to spend even more.

  6. Their actions are obviously insane, and that's why citizens need to own gold (as well as platinum, silver, and perhaps some crypto).

  7. There are few bigger endorsements for gold and silver than America's secretary of the Treasury gleefully telling the nation… "Let's go big on debt!"

  8. Double-click to enlarge this daily gold chart.  While it may be a "no brainer" to own gold as a hedge against the insane actions of governments around the world, investors must use professional buy and sell tactics with the asset to build sustained wealth.

  9. Gold has arrived at the outskirts of the $1666-$1671 support zone. 

  10. It's an area where I'm buying metal, but with a focus on silver and platinum.

  11. For gold itself, a stoploss under $1666 can be utilized to manage risk.  If gold were to decline to the next support zone at $1566 (doubtful but possible), investors may want to consider buying with no stoploss there.

  12. A push through $1760 is needed to put the gold market back in a solid price-positive posture, and from there a rally to $1820 is likely.

  13. Double-click to enlarge this beautiful ratio chart of silver versus gold.

  14. I've called this early part of the inflation cycle the "growflation" stage, and in relation to gold, both silver and platinum are already the stars of the show.

  15. This inflation with growth could last for a number of years; the real economy can continue to grow even if the QE-fuelled Nasdaq market dips more or crashes badly.

  16. With the above in mind, it is clearly important for gold-oriented investors to consider adding platinum and silver to their portfolios.

  17. Double-click to enlarge this long-term platinum versus gold ratio chart.  The .80 resistance zone has temporarily capped the platinum rally, but this is a big picture chart, and door is wide open for truly enormous gains in the coming years.

  18. Once the debt-funded growth transitions to ugly stagflation, gold will trade at vastly higher prices. For now though, platinum and silver are the intermediate-term horses for investors to ride!

  19. Double-click to enlarge this GDX daily chart.  As the infamous "Ben Banknanke" once said, I see green shoots!

  20. GDX is bursting upside from a small triangle pattern and edging over a downtrend line.  There's also a bullish non-confirmation created over the past few days; gold bullion has been moving lower while the miners have held their ground. 

  21. The GDX advance/decline line has steadied, and that's another nice green shoot.

  22. I'm forecasting an "institutional gamechanger for gold stocks" lies ahead for the miners.  Inflation has appeared almost everywhere in America except in the government's CPI index.  When it shows up there, and odds are incredibly high that it will, growflation will become stagflation. 

  23. Real interest rate charts will then begin to look like they did in the 1970s; real interest rates will decline while nominal rates rise… because inflation rises more.

  24. That's going to create an institutional stampede out of a lot of stock market sectors and into the miners, creating a kind of "1970s on steroids" situation, given the much higher debt loads now in play!
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