With the Winter Olympics just a month away, are you going for the gold? (January 24, 2018)
GLD GXBT SLD AEM NEM AEM
I want to look at Gold ( GLD ) today; some members have been asking about it for the last week or so, specifically, what is up with this? Very, very long base. If you really zoom out here, this is a base that has been going on certainly since mid-2016. But if you really want to zoom out a little bit more, if that is the top, that is the bottom, we can stretch this thing clear out here other then this little whoop-de-do here. So this is a base that has been in play for quite a while and Gold ( GLD ) is now starting to move higher.
I mentioned this a few weeks ago. I superimposed Bitcoin ( INDEXCBOE: GXBT ) against Gold ( GLD ) and we saw that there was actually a really, really pretty strong correlation with these two issues. One goes up the other goes down; Bitcoin ( INDEXCBOE: GXBT ) plunges Gold ( GLD ) starts to catch a bid. Right now this is the Bitcoin ( INDEXCBOE: GXBT ) trade price. You can see what has happened here, this is the weekly chart we will go to the daily chart. You can see, this looks really ugly, this looks like JD before it made the second lower high so this is a real problem for Bitcoin ( INDEXCBOE: GXBT ). But if we look at Gold ( GLD ), this is just starting peaking out above $128.00.
What I would suggest doing, if you are interested in making the trade, is once this gets above 130.00, that is 1300.00 an ounce, we have already seen CNBC and various other financial media outlets talking about Gold ( GLD ), it has been in the news for a while even though with everybody, except William Devane, it was out of favor for a long time, “What’s in your safe?” But now this is starting to spark a lot more interest. If this pushes up above 130.00 here or 1300.00 an ounce, I think you are really going to see kind of a blast off with Gold ( GLD ).
We don’t know for sure but this is how I would trade it: Look at a stock like Agnico Eagle ( NYSE: AEM ) here. This is drifting sideways. If we were just to take the price off and just look at the 200-day moving average, the 50-day moving average and the 150-day moving average, and even the 50-day moving average you would look at this and say, “Man, this is one boring chart, it’s just been trading sideways forever.” And it actually kind of has. We have just had these bouts of volatility but generally speaking this is one that has been in a trading range for most of the last year or so. Now this looks like it is starting to break out.
If you are a Gold ( GLD ) guy or lady you can take some of this stock here and just keep kind of a protective stop, 5 or 6 percent below. If this falls back into this cluster then it was a trade that you really didn’t want to take so you can get shaken out and then you can always get back in. That happens more times than I would like to admit.
Then the other one would be Newmont ( NYSE: NEM ), same thing. If you look here, this chart doesn’t show you a whole lot. But if you are out here you can see where this is a nice move off of 39.00 and now this is starting to move up on the next leg and volume is almost twice average volume. So frankly, I think either Newmont ( NYSE: NEM ) or Agnico Eagle ( NYSE: AEM ) will work for you if you want to start building a gold position. By the way, if you already have these hang onto them; nice trade.
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