The stock market has not been allowed to correct naturally in recent weeks. As a result, bullish sentiment was not cleansed and we have not been able to generate a sustained breakout. What this has done is compress the selling into a very short time frame.
The dollar has finally broken below its intermediate cycle trend. Last year the yearly cycle low occurred in early May. The most recent daily cycles have been running 35 – 40 days. The current daily cycle is on day 35.
The next big trending move will occur in the energy markets. All the technical and cyclical signs are in place to suggest a major bottom is forming. In the precious metals market we have the exact opposite setup. This video will clarify how these two markets are likely to behave in the next several months.
“you have to get on board now or risk getting left at the station”
How many times have we heard gold bugs use this as an excuse to buy into a declining market?
They have the strategy right, they are just looking at the wrong market. One doesn’t get left behind in a market that is correcting and holding below a declining 200 DMA. The world never just all of a sudden wakes up and decides hey we need to pile into a stagnated or declining market. That’s not the way human emotions work.
Humans are herd animals. We follow the crowd. It’s the reason why bubbles form. There are only two times one ever has to worry about getting left at the station. One is during a baby bull. We already had the baby bull rally in gold so there’s no risk of missing that again.
The other time one has risk of getting left at the station is during the final bubble phase of a bull market. This is the other period when price can just keep ramping higher and higher, going much further than anyone originally anticipates.
Yes traders have risk of getting left at the station, but the risk is in the stock market not the stagnated gold market. In this weekends reportI’m going to cover the psychology that drives a bubble because we are in the initial stages of one right now. This is your second opportunity to make an insane amount of money very quickly. This time it’s in the stock market. If you missed the baby bull in gold, don’t miss this one.