Precious metals aren't going to bottom until stocks are pretty close to the bottom, and I'm going to say that stocks aren't even close yet. We are probably going to have some 70- to 100-point down days in the S&P between now and the end of next week.
Metals are setting up for the buy of the year, but you have to be ready to pull the trigger when we get the signal that the bottom is in. Hopefully most people have listened to me and they are out of their stocks, because we aren't done yet.
I think we're entering a blood bath phase: five to seven days of all-out panic selling. Generally speaking, at the beginning of a blood bath phase, traders start to convince themselves the market is oversold and it can't go any lower, and that's about the time that the panic selling and the blood bath begins in earnest, and the price drops so far below what anybody predicted. They don't predict anything close to what generally happens in a blood bath phase.
You never want to try to pick a bottom in these things. You want to get an indication that the bottom has come and that the turn is in. You want to buy after the turn has come, not pre-maturely.
Gary Savage is a 57-year-old retired entrepreneur living in Las Vegas. He has been investing in stocks and commodities for 15+ years. He is a self-made multi-millionaire and attributes his financial success to savvy investments made in owning/selling several businesses, real estate, and, more recently, the stock market. He is also an Olympic weightlifting champion, and world record holder. Gary’s stock market investment philosophy and success owes to an unusually disciplined and keen understanding of market cycles combined with cutting edge sentiment data which allows him to anticipate and articulate how larger trends are likely to unfold. His analysis is almost always in strong contrast to what the public is thinking – and, provocatively, several steps ahead of the crowd. Gary’s renown as a recognized trading/investment expert in the areas of precious metals, stock market, oil and currency markets is demonstrated by his numerous internationally published articles in these market areas. Gary publishes the Smart Money Tracker, a market newsletter available online by subscription only, and also the SMT free blog.
