Here’s my take on Gold ($GLD). You might not like it – April 12, 2024
Dan Fitzpatrick here at StockMarketMentor.com. This is going to be a quick one, don’t buy gold, it’s heavy. How’s that?
Look, with all the geopolitical risks, inflation doing what inflation does, and that’s inflating, for various reasons. I’m still waiting to understand Janet Yellen’s definition of transient, but what are you going to do? Nobody expects much of her anymore, never did.
The thing is, Gold ( NYSEARCA: GLD ) has been rocketing for a while, and it’s been getting a lot of headlines lately. I just want to mention this, when something like this happens, where everybody just watches and watches and watches, and then the headlines just explode, hey, Gold ( NYSEARCA: GLD ) is going to a million dollars.
It’s the same thing with Bitcoin for example, or any particular stock. When everybody is singing the same tune, the underlying is going to have a flat note, we’ll put it that way. That’s what’s happening with Gold ( NYSEARCA: GLD ) now.
I don’t know whether, ultimately, it runs higher or not. Gold ( NYSEARCA: GLD ) has always been a puzzle to me because it’s not worth a damn, it’s just heavy. It has no intrinsic value, you could say, yes it does because people value it. All right, so does Bitcoin, there, put that in your pipe and smoke it. It’s all the same to me.
I’m just looking at the chart and I see how this ran way up out of a nice breakout, five or six percent, and then fell back. And then we get another breakout here, and then this time it’s moved up. If we look at this morning’s intraday high, this is another 10 percent. So all in all, from this proper breakout, this went up almost 20 percent.
Now typically, in Bill O’Neil’s world, Bill would say that you can look for a stock, once it has broken out in a proper breakout, you can look for it to rest about 20 percent higher, typically not more than that. And so, as I look at Gold ( NYSEARCA: GLD ) here, this is the perfect time for it to be settling out.
You’ve got everybody and his brother saying, buy gold, buy gold, we’re all going to die. Gold ( NYSEARCA: GLD ) has already made this big move. So my sense is, I would want to stay away from this right now. Don’t be messing around with it, everybody’s looking at it. But also know this, if the bombs start falling, all bets are off. And you’ll forget what I said anyway.
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