Dear Trader and Investor:
The past couple of years have been good for traders.
The melt up in stocks that many profess is upcoming actually began in Nov 2016, just as president Trump was sworn in as President.
As of that moment, we have been alerting our subscribers that we were at the brink of a major shift in economic forces.
Not only was the time ripe given president Trump’s political agenda for cutting taxes and spending on infrastructure. His pro-business and pro-market policies have allowed speculation to run wild.
It was the final hurrah for a market that had been rising more due to the promise of some sort of economic stimulus from governments than from real growth…
My name is Omar Ayales, Editor and Chief Market Strategist for Gold Charts R Us (GCRU).
I’ve been writing GCRU for nearly 10 years using technical tools designed by legendary chartists and market analysts Pamela and Mary Anne Aden and Sir Harry Schultz.
Sir Harry, or Uncle, as he likes to be called, is the guru of gurus when it comes to investing and trading.
It’s no coincidence he was dubbed the highest paid investment consultant for nearly 20 years in the Guinness Book of World Records.
Before he retired and handed down his knowledge, skills and tools, Uncle had his eye on the very issues that pushed the world into the place where it is today, for better or worse.
Please be warned, I’m not a doomsayer. I’m an optimist. I don’t believe the world will come crashing down.
I do believe the market is cyclical, and identifying those cycles its where GCRU has been most successful.
An unbiased read of charts and technical indicators have allowed us to deliver double digit gains year after year for our subscribers
We’re living a moment of systemic importance given the mega shifts in economic trends.
Consider the market has risen nearly 40% since President Trump got elected!
But even more importantly, a shift in 30+ year bull market in bonds was telling us the era of low inflation was coming to end.
The events that unfolded in Nov 2016 had already been predicted by several factors… a toppy mega bond market and the rise in commodities.
Gold led the pack.
Exactly 11 months earlier, the Fed raised interest rates, reversing a 34 year policy of low interest rates that looked to spur economic activity.
That event put a floor under the price of gold at $1,050.
Since then, gold has risen steadily. It’s up 25%. The Miners are up nearly three times that.
And although gold has underperformed the overall stock market during the past 2 years, it’s quiet, yet steady rise, is very telling.
This relationship suggests it’s gold’s time to shine.
Notice the times when both the S&P 500 and gold have risen together… it was indicative of either a top or a bottom in both of those markets.
Gold’s quiet up-move since Dec 2015 is now telling us its ready for a renewed rise, while stocks enter a bear market.
This move coincided with the stock market melt up!
And we did well trading industrial and transportation stocks the past 2 years (+15% yearly on avg).
More importantly, we sold at the right time.
Back in October, stock market action turned bearish. Soon after it was confirmed, triggering a Dow Theory Bear Market confirmation.
We sold near the top protecting profits and a few weeks later, shorted the NASDAQ, easily using recommended ETFs, pushing our profits up in 2018.
Price action suggested the “tide had turned”, and a mega bear market had woken up.
What this means in terms of an economic cycle, we will not go into at this moment.
But proper technical analysis of chart patterns have over time been predictors of price action, without necessarily knowing what event will ultimately be the catalyst.
And when analyzing charts for all markets collectively, it’s clear there is a logic and a path behind the movements. Even if we can’t make business or economic sense of it at the time the move is developing.
Notice this next chart of the U.S. Dollar Index (DXY). Kind Dollar had a good 2018, but it’s uptrend seems to be petering out and likely continue on a longer term bear market.
The dollar just recently broke below a technical pattern called a RISING WEDGE that exposes downside pressure.
The chart signaled a break below 96 in DXY would break below the rising wedge pattern and the dollar would then likely fall to the lower 90s.
DXY today is struggling to hold on to 95 with downside pressure still mounting.
This alone is also very bullish for gold because gold and the U.S. dollar tend to move in opposite directions.
It has been the case ever since Richard Nixon suspended the dollar’s peg to gold in 1971.
Weakness in the dollar is telling us gold is very strong.
Don’t be surprised to see gold rise to $1365-$1380 level short term. Forget $1,300… it’s the real multi year resistance.
A break above this level would be most impressive and would confirm the cyclical bull market in gold that began in Dec 2015.
And our indicators tell us this is likely to happen in the near term.
The break out would be the catalyst to an upsurge in silver and gold shares that would be unprecedented.
We’ve been recommending our subscribers to buy gold shares since our indicators were pointing an intermediate low back in August 2018.
They offer most upside potential. Back in 2016, after having bottomed in 2015, they surged in one of the most profitable up-moves recently. Today, we’re are before a similar situation.
The timing couldn’t be better.
Gold shares bottomed in Sept and have been outperforming the market since then. For the most part, they’re uptrending and confirming support. Creating a solid platform they can rise from.
When comparing gold shares to various other markets, the ratios all trend in favor of gold shares.
Notice the chart below comparing gold shares to the different markets. Notice a clear uptrend emerging, confirming the general up move.
Gold shares is where we’ve been concentrating our positions today.
Through our service, we provide specific guidelines and lessons to trade the markets successfully.
We provide weekly commentary with over 20 charts analyzing price movement technically while considering macro economic tendencies.
I believe in long term placements, but I’m also ready to take a profit when I see it.
I offer specific buy and sell orders and remind you when they’ve been triggered. We have a Trader’s Sheet with a summary of our positions, general sentiment, target guidelines, stops and limits that constantly remind you where we are at.
I give out quarterly reports reviewing the good and the bad and new sectors to consider.
I measure performance regularly and are not afraid of being objective, in following the trend, in using the tools and knowledge gained from my own experience and from the teachings of the greats.
I hold your hand all the way!
And although we cannot guarantee success, our track record speaks for itself.
2018 was a great year where we averaged 35% gains on all sectors traded (resource, precious metals and U.S. stock market).
Momentum has shifted to the gold and it’s within this space that you are destined to profit handsomely. Let me show you the trends. Our correlations. Our ratios. Our unbiased analysis. If followed, you will always be in the right side of the trend.