On crazy days, you let the dust settle and then make a move. One of the most wildest, violent trading days you've seen. Gold is fighting the 18-day moving average..
Will a hot CPI today not hit the market like the hot PPI yesterday. The markets have baked in the 75 basis points already plus the FOMC notes were hawkish...
I believe what all the charts above are showing us is that the US stock markets and the rest of the world are headed for a recession. How long and how deep remains to be seen yet..
Gold is the ultimate currency. Does this mean gold mines are the ultimate businesses? To make money with gold stocks, investors need to buy them on a price sale...
We also plot $GDXJ and the number of new 52-week lows, smoothed with a 10-day moving average. The recent divergence is in line with the divergences at the 2018 and 2016 lows.
In my last update, I outlined my expectations for us to move into a long-term bear market which can last anywhere between 7-20 years. And, many commented that a 20 year bear market is simply not possible.
We have maybe another month or two months until this phase is done. You have not missed the big opportunity, it is still here. Do not play with leverage!
Gold faced a frosty reception on Friday as well as fear of higher interest rates and the soaring dollar again almost wiped out a good week. But we continue to see positive signs there and gold stocks remain undervalued and underappreciated.
