US Civil War Cycle & Gold

  1. Can market trends be predicted? Sometimes they can, but more often they can’t.
  2. If predictions are a questionable tool at best, what tools can investors use to reliably build wealth?
  3. For the answer to this key question. Double-click to enlarge this monthly chart of the Dow.
  4. In the stock, gold and crypto markets, the major horizontal support and resistance (HSR) zones on the weekly and monthly charts present the best opportunities for investors to buy and sell…
  5. And sometimes they perform in all three markets at the same time!
  6. I have Dow 7.5k, 18k and 30k as “Buy zones from champions“, years before they happened. The bottom line is this:
  7. If investors don’t prepare ahead of time to buy these zones, the emotional negativity that comes with this opportunity can be overwhelming and investors won’t buy anything at all.
  8. Based on the CAPE ratio, the US stock market is massively overvalued and will only become good value when the CAPE reaches 10 or below.
  9. That doesn’t change the fact that the Dow 30k has been a significant support zone and a significant opportunity zone for investors.
  10. The next Fed meetings in September and December should mark the end of the party.
  11. Double-click to enlarge this key Bitcoin support and resistance zone chart.
  12. My preferred approach for most investors is buying the crypto miners and the “old coins” in the major bitcoin support zones, for quick 50%-200% gains!
  13. Gold? Double-click to enlarge this somewhat boring but money-making gold chart. Notice the price action of GDX, GDXJ and GOAU at the bottom of the chart.
  14. Of course, gains of 20% and more are realistic for investors who take action on gold’s key support zones once or twice a year.
  15. The last one was $1675, and my suggested focus “out of the gate” was the XME ETF and its component stocks.
  16. Double click to enlarge. I am now in sell mode and investors can also book profits.
  17. XME holds base metal miners as well as gold and silver miners and the good news is that the next leg of the rally from gold’s $1675 should see the GDX, GOAU, SIL, GDXJ and SILJ ETFs outperform XME.
  18. As the September Fed meeting approaches, stock market investors are likely to become more nervous. Social unrest in Europe due to energy prices (and cold weather energy shortages?) is likely.
  19. This is good news for gold and not so good news for the stock market.
  20. The FBI also appears to have confiscated Trump’s passports. Is he under arrest? In that case, will all of his constituents just stand there…or will some of them turn violent? If he gets arrested, I suggest it’s probably the latter event.
  21. Most stock market investors appear to be viewing the current lull in the 2021-2025 civil war cycle as the end of it. They may have to revise that outlook… and soon!
  22. Double click to enlarge. This weekly chart tells the main story of GOAU. A minor weakness needs to be bought (and I’m eagerly buying it) to set up a strong run to $18 by September 21st.jay day“.
  23. At this point, if Trump clangs, multiples of $18 would be likely, with gold at $2500-3000, while the American Civil War cycle is in full swing.
  24. The bottom line: US gold-stock investors are poised to get a lot richer, but they also need to stay safe!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.

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