Go for the Gold. Here’s your trade on Gold…and Bitcoin!! – September 23, 2024
Dan Fitzpatrick here at StockMarketMentor.com. Let’s go for the Gold ( NYSEARCA: GLD ), this has been moving up for quite a while.
It would be nice to say, Well, where we were back here, a couple of years ago? Well, we were someplace else. Although, I will tell you I’ve got some physical gold that I’ve held for longer than I can even remember. So I guess I’m doing okay there, though the big deal is, when are you going to sell? And that isn’t going to happen.
With an ETF like GLD ( NYSEARCA: GLD ), that’s a different deal. I look at this as a different deal. As I look at this on the daily chart, you can see a nice trend on the 50-day moving average. This 21-day moving average, the green line, has been support for this. We’re just looking at really, really short-term stuff.
If we look at this on a longer-term basis, I’m going to make a case for this base to be a multi-year base, over three years. And then you finally got the real key breakout right here, again, on the weekly chart. And then the following week was when the volume came in. Can’t you see how this thing had been in a basing pattern?
Then, if we just stretch this over to the right you can see how this breakout was a really, really important technical move. This was truly the confirmation on heavy volume here. And since that time, of course, this just kept going up. But really, when you’re looking at this on a weekly chart, this wasn’t that long ago.
I will make the case that this move is actually just getting going. Or to put it another way, it has a lot more to run from where it is now. I look at the daily chart, and I see a nice move higher out of this little consolidation here and I feel like Gold ( NYSEARCA: GLD ) is really going to start to continue to move.
And also think about this, the Fed cut rates by 50 basis points, and politicians cheered, of course. But everybody else who really has a handle on things is going, Why 50 Jerome? I know that’s what everybody was betting on, but that doesn’t mean that the bet was that it would be the right move, it was rather just the stupid stuff that you would do.
The fact that Gold ( NYSEARCA: GLD ) just continues to run tells us that the Gold ( NYSEARCA: GLD ) market thinks the Fed is probably going to keep cutting for a while. That’s going to bump inflation up even more, which is what that does. And so with an inflationary environment, guess what happens to Gold ( NYSEARCA: GLD )? It goes up like it has been doing here.
But wait, there’s more. I’m going to bring Bitcoin into this into this deal. This is a weekly chart on Bitcoin. Bitcoin can perform a lot like Gold ( NYSEARCA: GLD ). I look at this and this is looking like a really, really nice deep cup, an agonizing cup if you bought here, all the way down, back up, and now it’s looking like you just got this little handle here.
Anyway, my sense is, that this crypto is going to do really, really well. I like the way this chart is setting up, but what I really like is the way Gold ( NYSEARCA: GLD ) is trading. I think this can just continue to work. Make sure that, in this kind of market, seriously, you should be holding winning positions.
If you have losing positions and we’re not going to bat a thousand, if you have losing positions, then why don’t you just ditch them so you’re looking at nothing but green in your account? It keeps your attitude, it keeps you in a better frame of mind, and you’ll make better decisions.
I would say the Market is in a medium-bullish atmosphere right now. The sentiment is kind of greedy, maybe a little bit greedy, but not too greedy. It’s almost a Goldilocks thing, where we can continue to run higher for a while because the Market ( NYSEARCA: SPY ), is not overbought. It’s just that the bears are being overrun, so keep that in mind.
Look at Gold ( NYSEARCA: GLD ), I think that’s better than the GDX ( NYSEARCA: GDX ), and the Gold Miners ( NYSEARCA: GDX ). Definitely keep an eye on Bitcoin and IBIT ( NASDAQ: IBIT ), This could be moving out as well.
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