I like what I see. This is still how I'm playing it.
I would avoid waiting for a market crash as any kind of reference for timing or reason to wait. Remember, while some things are definitely inevitable, inevitability is often a terrible trade/investment strategy.
In the end it's all about timing. It can take decades for inevitability to arrive.
I bring this up because this seems to be what everyone is afraid of, and quite frankly I see no reason not to be bullish on metals and miners right now.
Even if the market were to crash in the near future, it doesn't even matter. We knowingly have a plan for that too. We know what the response would be. We know everything we need to know already.
In terms of both price and timing, the weekly 50ema & 200ema on physical gold are still the "must buy" retracement markers which I've literally spent years talking about. Years. That's because I knew when the bull market finally came, we'd have to deal with these types of situations and 'uncertainties' and I wanted everyone mentally prepared well in advance.
If gold were to ride along/under the W50ema rather than bounce from it, you're in an accumulation phase rather than a pivot low. That's the only other nuance you need to understand.
The plan is unchanged. The strategy is unchanged. The precedent is unchanged. The macro is still in play. The drivers behind the bull market are strengthening, even if they're temporarily and naturally offset for a moment.
The plan was never to check golds performance along the way against some sloping trendline. This is no longer the type of analysis that will get you anywhere. The plan has always been to buy major retracements using the weekly 50/200ema as the definitive guide with a clear understanding of what each of them meant in terms of expectations.
Today, gold is slightly below the W50ema. So what? That doesn't mean it's headed towards the 200. It's not unusual in a bull run to see it skirt a little below like it is now. This is normal. I've talked about this a lot in the past too.
We also predicted that many new precedent would be set during this bull run. We've been vindicated so far. Some of the new precedent you could argue is actually the lack of prior precedent being true this time around. Things are absolutely different this time. Make no mistake. I would like to compile all of the things I'm seeing the share in the near future.
I'm still very interested in the gold/oil ratio and what it's been able to tell us historically vs what's happening now. I'll have to write a standalone update about all of that later. I feel like I'm zeroing in on something but it's too early to say.
The miners are in the process of back testing their new precedent of breakout distance from moving averages just as gold dips a bit below the W50ema all of which is in confluence. Some are already there, some need a little further to go.
It's not uncommon for me to post around this point in time of a cycle... The deja vu of explaining these conditions is strong.
So once again we have confluence of miners backtesting critical support of their recent moving average breakout levels with gold skirting the weekly 50ema all while being oversold and scary to buy.
Those of you who've followed me long enough know what this means already... That we're likely to see confluence across the mining sector retracing these backtests and all completing before the next mega rally.
To clarify... This mostly applies to flagship names retesting their distance from moving average price supports. At least 90% or so of them need to complete this backtest before we can proceed again. All looks good to me.
I saw an email from Don Durrett recently, suggesting that his followers not be traders in this bull market. For 95% of you, this is spot-on advice. It's best to continually invest on major dips with a multi-year investment strategy.
That's where you're at today, if you're a bull. I personally see no reason to sell, but do see reasons to add new tranches. I can't speak to whether we get an immediate pivot bottom here or run boringly sideways for a few weeks. To get a pivot you'd need a little more fast and hard selling.
But we're back into a buy zone regardless.
#gold #silver
Looks like we are potentially headed to the weekly 50ema on gold.
I've spent a few years talking about this retracement target to have us all mentally prepared for this moment when it eventually came. All this time later... we are probably here.
During a bull run, gold never loses the weekly 50ema. If it does, that's the signal that momentum is done and the current uptrend is over. It may tick just below it (what I call a "peekaboo") but it never actually loses it.
The lone exception was during the GFC when it hit the 200ema instead (and v bottomed). The GFC was of course a major crisis, but what it did was effectively truncate the existing bull run in gold, much like COVID did to a majority of the market in 2020 (get major selloff, V recover to starting line, resume any existing bull on same trajectory within prior trends like it never happened).
Historically, this weekly 50ema is the most ideal retracement target in any gold bull market. Literally THE sweet spot.
It's reliable, usually oversold when it happens, rebounds quickly as a springboard, and tends to only come every ~15 months or so (I don't remember exactly, been a while since I mined all of this).
It's simply the ideal sweet spot for a retracement buy during a bull market.
I will buy it with prejudice. Time silver the same way using gold as the guide.
If we get another "GFC" and for any reason gold hits the weekly 200ema, that's the true YOLO spot. I once said a couple of years ago when analyzing gold bull market retracements (getting ready for now) that we'd go all in on the 50ema, then borrow money on leverage to buy the 200ema (if it happened).
I think that's still the right way to look at it. The point I'm trying to make is borderline literal.
There are no arbitrary "price" targets. We all-in buy the 50ema and we refinance our lives to buy the 200ema.
Nothing in between. That's a dead zone between the two moving averages.
By the time we hit the 50ema we should have an idea of whether or not we have a shot at another GFC and thus a shot at the 200ema.