Thinking this is a great time to buy gold? Here is my take. (February 22, 2016)
NUGT GLD NUGT SP-500 GLD GDX NUGT
In this video I want to look where not to many people are looking right now, and that’s gold. Specifically, we’re looking at NUGT ( NYSEARCA:NUGT ); that’s the 3 x Bull Shares, you get 3x as much bang for your buck here. This it the Miners ETF . Here’s the thing: There was a big breakout on gold, everybody was talking about it for the last couple weeks. Mark Cuban went long, out of the money calls on GLD ( NYSEARCA:GLD ). Dennis Gartman got bullish “of” gold, whatever. So everybody’s running after gold, and it made a great move. So here’s what I’m saying, “What’s the next move? Are we buying are we waiting? Are we going to hang on to this, then wait for the next breakout, and make a gang of money. NUGT ( NYSEARCA:NUGT ) is going to go all the way up to $100.00.” I don’t think so. I want you to look at a couple thing here.
First of all GLD ( NYSEARCA:GLD ), this is the metal not the miners, but this got WAY over extended. Big, big blow-off top here, look at the volume, this is going to take a while to work itself out. This looks kind of like Smith & Wesson did at one point, only that was in an uptrend. But here, the stock went basically parabolic. This, unless it’s some huge, massive short squeeze, and it isn’t, this just doesn’t keep going like this, it needs time to relax. The only way this is going to start moving up again from here, and hence this is something you’re going to want to be long right now, the only way that’s going to happen frankly, is if the S&P starts cratering. If China does what China is capable of doing, which is implode, some of the other markets do what they do, if the central bankers, Christine Lagarde, the gal with the big deep tan and the grey hair.
Anyway, her and Draghi and Yellen and the rest of them, if they start really going to town you’re going to see a big spike in gold. But so far I don’t really see this happening. I see this, ( NYSEARCA:GLD ), just sticking around here. The Gold Miners ( NYSEARCA:GDX ), the same thing, just kind of sticking around here. Here’s what I want you to do: On the GDX ( NYSEARCA:GDX ), I use TC 2000, I will set my price alert for 19.05 and I’ll set it there for a month, I’ll restart it. When this goes over 19.05 I’m going to want to know about it. Similarly with the NUGT ( NYSEARCA:NUGT ) here, because this moves fast. The top here was 56.89, so we’ll set this for 57.00. Now, you can say, “Shoot man, that’s a long way from where it is now, a long way, $5.00, that’s about 10 percent. Look, this thing moves really fast, really far. So I’ll wait. If I get an alert here, on a breakout, this thing can easily go into the 60.00s and 70.00s just on sheer momentum.
So the reason I wanted to show you this now is because this isn’t a trade RIGHT NOW, but it’s not a trade THAT USED to be either. In other words, I’m not showing you what you COULD have done last week or the week before. I’m showing you what you should be ABLE to do next week or the week after that, or frankly even later this week. But the point is, if my alerts ARE NOT triggered, and I’m not going to send one out, you know what the alerts are, you can set them yourself you’ve got software just like I do, if I know where those alerts are and they ARE NOT triggered then I don’t want to be messing around with gold, I don’t want anything to do with it. So this is a way that you can know that you’re going to BE there IF you want to be there, because somebody’s going to tap you on the shoulder, your alert. And if you DON’T want to be there, nobody’s going to come and invite you to the party that’s a dud anyway. Anyway, that’s how I’m trading gold. I hope you’ll check it out and maybe you can make that trade. Let’s go make some money.
Free Chart