Gold stocks: some profit booking is prudent

  1. Years ago when I predicted a “virus cycle carpet bombing” of America for 2019-2021, I warned that it might look like a “peanut game“in relation to the 2021-2025 war cycle that was to follow.
  2. Americans are happily tossing their virus masks in the trash, just when they should be thinking about buying hazmat suits and building bomb shelters. Alas, such is the irony of life.
  3. Unlike the disgusting wars of regime change initiated by the US government”gmen“In the past, as this cycle of warfare escalates, significant blood is likely to be shed… on American soil.
  4. Double click to enlarge. Gold is the money of champions, and fiat seems to be the money of…fools.
  5. It should be obvious that fiat-oriented freedom is not true freedom. It is false, because it is oriented towards the government. Having said that. Double click to enlarge. That’s not a “first call“. It’s a call to get rich!
  6. Investors are making significant profits on gold stocks bought into my buy zone in late September/early October, and now is the time for conservative investors to book some of their gains.
  7. For a closer look at the $1900 sell area. Double click to enlarge. $1900 is an important resistance and while many bullish factors are at play, from a tactical perspective, it is a profit reservation area for investors in mining stocks.
  8. I don’t have the same view as UBS analyst Joni Teves, but anything is possible in the markets, and his target of $1,600 is about the same as my buy zone of 1,577 $ to $1,450.
  9. The difference between his outlook and mine is that I want investors to be ready to buy between $1,577 and $1,450 if that happens.
  10. In terms of prediction though, the odds favor a push towards $2089 more than a drop from its target price of $1600.
  11. In the short term, upward pressures on commodities are likely to continue, but bond yields could fall as the stock market enters a panic phase.
  12. Double-click to enlarge this disturbing Nasdaq ETF chart.
  13. For an overview of the US stock market. Double-click to enlarge this Dow chart. In summary: I have given major buy and sell signals over the past 40 years, and this sell signal is the most important of them all.
  14. It’s basically a sell signal for the entire US empire.
  15. The US central bank uses inflation calculations disconnected from the “ground boots“the pain of pricing felt by the average citizen.
  16. This is one of the reasons why Fed Chairman Jay did not announce an interim rate hike (between meetings). Here is another:
  17. The Fed was probably hoping that inflation would subside so that it could continue with its programs of quantitative easing and zero interest rates for the government, and for the stock and real estate market”oligarchs“.
  18. This does not happen. Instead, the cycle of war has intensified, and war is one of the greatest catalysts for inflation in history!
  19. Double-click to enlarge this spectacular chart of GSG-NYSE Commodities Funds. A powerful inverse H&S model is in play.
  20. If gold stock investors are making partial profits on some of their mining stock positions here, broad-based commodity funds (as well as gold bullion itself) are a good place to allocate some of the proceeds. .
  21. Double-click to enlarge this chart of triple-leveraged bond funds.
  22. I do short trades for this bond fund as well as triple leverage GDXU and GDXD for gold stocks in my swing trade newsletter. The regular price is $289 for 3 months. I have a special gold bug this week for $249 for 4 months. Merchants can receive alerts by email or SMS. Email me if you want the swing trade special. Thank you!
  23. Then double-click to enlarge this attractive GDX chart. A breakout from a huge drifting wedge pattern is in play but…
  24. A Friday close above $35 is required for “lock him upConservative investors should also wait for Friday’s gold price close at $1915 before they get too excited, but there’s no doubt that the tide is turning… and favoring the bulls!

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