Gold In July: The Time To Buy Stewart Thomson
Jul 3, 2018
- Charts don’t make fundamentals, but fundamentals do make charts. That’s because market fundamentals create liquidity flows. Those liquidity flows create technical action on the charts.
- Please click here now. Double-click to enlarge this important daily gold chart.
- When market technical indicators like RSI, MACD, and Stochastics become oversold, the market rallies. That’s a given.
- What’s important to investors is whether an oversold condition is likely to produce a powerful rally or just a weak upturn that fails quickly.
- For gold, oversold conditions that occur in July and December tend to produce the strongest and most reliable rallies.
- On that note, please click here now. Double-click to enlarge. This weekly gold chart tells the entire story for seasonality.
- The green arrows reflect rallies that began in either July or December, and the red arrows reflect rallies that began at other times of the year.
- Clearly, my mantra, “Don’t ask why, just buy in July!” is a proven money maker for gold price enthusiasts around the world.
- There’s no need for amateur investors to act recklessly and back up any trucks when buying. Approach the market like shopping in a grocery store.
- I’m a very eager buyer this week of modest amounts of stock in an array of North American, Australian, and Chinese precious metal companies.
- The goal isn’t to figure out if any single price point could be the ultimate low of the price sale. It’s simply to do some shopping across the precious metals board and enjoy it!
- For emotional comfort and financial prudence, nervous investors who have a hard time buying with small size should buy put options along with their modest stock purchases.
- Please click here now. Gold is in a very strong position for the second half of the year.
- While Powell is unlikely to pause rate hikes and QT because of the stock market swooning, he might do that. Institutional money managers would view his actions as very inflationary and buy gold aggressively.
- The price surge they created would be an opportunity for commercial traders and gold bugs to sell some of what they are buying now, at a solid profit. From there, these astute investors should prepare to rebuy in December.
- More tax cuts are almost certainly coming, and other nations are beginning to follow America’s lead on that front. China is poised to cut taxes, which is quite inflationary for both gold and stock markets.
- The second round of US tax cuts comes later in the business cycle than the first one. It is likely to be viewed as much more inflationary than the first round of cuts, regardless of what Powell does.
- Indian dealers are beginning to do some light buying now with the price near key support at 30,000 rupees per 10 grams. Also, some top Elliott Wave analysts see the $1225-$1240 area as a key buy zone. The bottom line:
- Like the arrows on my gold charts, all the lights for gold in July 2018 are quickly turning green!
- Please click here now. Double-click to enlarge this GDX chart. The action is truly impressive, given that it happens while gold bullion has a $140/ounce price sale.
- Please click here now. Double-click to enlarge this GDX versus gold chart. What is happening with gold stocks compared to bullion right now is historic, and the fundamental driver of the stupendous outperformance of gold stocks versus bullion is the rise of inflation around the world.
- A deflationary money velocity bear market has been in force since 1995. It’s ending now and the GDX versus bullion ratio chart tells a thousand words of that story. Investors need to think hard about what can happen to GDX in terms of upside action, if gold rallies to above $1400 in this environment.
- On that note, please click here now. Bank of America’s top analysts believe gold will not just touch $1400 in the coming months, but average that price in the final three months of 2018.
- I’ve predicted that GDX will make an all-time high long before bullion does, and that’s because the world is entering a period of general inflation. Precious metal stock enthusiasts need to buy in July, so they can watch their gold and silver stocks fly!
Jul 3, 2018
email for questions: firstname.lastname@example.org
email to request the free reports: email@example.com
|Tuesday 17th Jul 2018
Special Offer for 321Gold readers: Send an email to firstname.lastname@example.org and I'll send you my free “Poised For A Golden Pop!” report. I highlight ten gold stocks with solid business models that are poised to rally 50% higher in a very short time frame. I include money-making buy and sell tactics to keep investors smiling every step of the way!
Updates Subscription Service: Note we are privacy oriented. We accept cheques.
And credit cards thru PayPal only on our website. For your protection
we don't see your credit card information. Only PayPal
|Subscribe via major credit cards
- or make checks payable to: "Stewart Thomson" Mail
to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario
L6H 2M8 / Canada
is a retired Merrill Lynch broker. Stewart writes the Graceland
Updates daily between 4am-7am. They are sent out around 8am. The
newsletter is attractively priced and the format is a unique numbered
point form; giving clarity to each point and saving valuable
Thomson is no longer an investment advisor. The information provided
by Stewart and Graceland Updates is for general information purposes
only. Before taking any action on any investment, it is imperative
that you consult with multiple properly licensed, experienced
and qualifed investment advisors and get numerous opinions before
taking any action. Your minimum risk on any investment in the
world is 100% loss of all your money. You may be taking
or preparing to take leveraged positions in investments and not
know it, exposing yourself to unlimited risks. This is highly
concerning if you are an investor in any derivatives products.
There is an approx $700 trillion OTC Derivatives Iceberg with
a tiny portion written off officially. The bottom line: