Follow the smart money!
Updated
1. Bonds are showing a very similar up trend pattern as in the early 2020 (black line)
See what happened next in late February and early March. As soon as the market started its descent, bonds shut way up !
2. The dollar appears to want to bottom. Where did it go when bonds shut up? (Orange line). There was a small lag but DXY went way up to the roof!
3. What does it mean for Gold (cyan line) & miners? As the dollar shoots up, Gold, priced in USD, will correct like they did then. Target is hard to establish at this point but a significant pull back is expected. I will update when I am out of this trade.
4. Conclusion, as soon as the over valued stock market shows signs of weakness, bonds will shoot up, the dollar will follow and gold & miners will correct significantly. As they also did in 2008 (not shown in this chart) before taking off!
Please note this is a short term view (30 to 60 days). I am bullish on gold and miners long term. However, a great entry price should come soon. Why not profit before then?
Disclaimer: The above is not an investment advice. It is merely an opinion and I share it for your entertainment only. Do your own due diligence and above all, trade safely and stay safe!
See what happened next in late February and early March. As soon as the market started its descent, bonds shut way up !
2. The dollar appears to want to bottom. Where did it go when bonds shut up? (Orange line). There was a small lag but DXY went way up to the roof!
3. What does it mean for Gold (cyan line) & miners? As the dollar shoots up, Gold, priced in USD, will correct like they did then. Target is hard to establish at this point but a significant pull back is expected. I will update when I am out of this trade.
4. Conclusion, as soon as the over valued stock market shows signs of weakness, bonds will shoot up, the dollar will follow and gold & miners will correct significantly. As they also did in 2008 (not shown in this chart) before taking off!
Please note this is a short term view (30 to 60 days). I am bullish on gold and miners long term. However, a great entry price should come soon. Why not profit before then?
Disclaimer: The above is not an investment advice. It is merely an opinion and I share it for your entertainment only. Do your own due diligence and above all, trade safely and stay safe!
Note
Still awaiting the stock market break down but miners and godd certainly have shown weakness ...
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