-
Gold continues to consolidate with sideways price action after reaching the $1500-$1550 resistance zone.
-
Please click here now . Double-click to enlarge. Investor patience is required when the price arrives at a major support or resistance zone like $1500-$1550.
-
The good news is that for the current gold market reaction, this patience can be measured in terms of months rather than years.
-
The massive bull patterns on this weekly chart suggest gold will be the world’s top performing asset for the next several decades.
-
Please click here now . Double-click to enlarge. In the medium term, the $1465 and $1397 support zones should be the main areas of focus for investor buying.
-
I’ve suggested that a close over $1525 should produce a fast surge to the $1566 resistance zone.
-
Please click here now . Excessive optimism by stock market investors is common at all market highs, especially late in the business cycle.
-
This time is no different. Trump is pro-business, but America lacks the demographics to produce the 1950s or 1880s type of economy that nostalgic investors want to see.
-
For the next decade, Morgan Stanley predicts about 4% annual gains for a typical stock and bond portfolio.
-
From a performance standpoint, that prediction is in sync with my suggestion that America is at a time somewhat like 1966; inflation begins to appear, growth stagnates, and gold stocks rally solidly higher for the next 10 to 15 years.
-
Please click here now . In the 1970s, an oil price shock added to inflation in a big way.
-
In the current market, oil is unlikely to spike higher because of a supply shortage. A glut of oil and a stagnant price related to failing global demand is my preferred oil market scenario.
-
This time, the coming inflation is likely to be caused by global government debt.
-
Ominously, QE has reached the endpoint of its ability to stimulate the real economy. It’s only function now is to keep the stock market and government bond market from collapsing. As a tool, QE is becoming more inflationary than deflationary. This transition is slow but relentless.
-
Please click here now . Double-click to enlarge this Nasdaq index ETF chart.
-
Whether the US stock market goes higher, lower or sideways, my www.guswinger.com swing trades provide a simple approach to make large potential profits with limited drawdowns.
-
The current buy signal has been a gravy train for traders. I added money to my Nasdaq trading account on Friday, based on the profitable action!
-
The stock market tends to trend well in the November-December period, and this year the trend appears to be to the upside.
-
Regardless, the miners are where most investors should have their focus. Please click here now . Double-click to enlarge.
-
Frank Holmes’ GOAU ETF has performed solidly during this gold price consolidation. Volume has surged on rallies and subsided on declines.
-
That’s the sign of a very healthy market!
-
I outlined the $15.50 area as a key buy zone, with an optional stoploss just under $15. This trade is looking quite good already, and a close above $16.50 targets the $18 highs.
-
A move over $18 targets the $21 zone. The GOAU ETF, and most of its component stocks, should perform incredibly well over the next 10 to 15 years.
-
I recommend owning both GDX and GOAU. That’s because GDX tends to have less drawdowns on gold price reactions, and GOAU is the clear outperformer on the big rallies!
